Breadfast, an online grocery delivery company that wants to become a regional leader in the food and grocery delivery sector in Middle East and Africa has raised $26 million in Series A financing from an impressive group of investors, techcrunch.com reported.
They include lead investors Vostok New Ventures and Endure Capital and participating investors JAM Fund (led by Tinder co-founder Justin Mateen), YC Continuity Fund, a large unnamed Saudi-based fund, Shorooq Partners, 4DX Ventures and logistics giant Flexport.
The investment is coming two years after Breadfast raised a $2 million pre-Series A round. In total, the Egyptian on-demand delivery company has secured more than $30 million.
In 2017, Mostafa Amin, Muhammad Habib, and Abdallah Nofal came up with the idea of an on-demand bakery service that delivers freshly baked bread and pastries to customers. The company is now a full-service online grocery retailer with over 2,500 SKUs.
CEO Amin, quoted by techcrunch.com, said the founders started with bread because it was the “most basic food unit in an Egyptian household.”
With more than 2,500 supermarket items, Breakfast currently serves 170,000 households in Egypt. The company claims that it has a 65% customer retention rate month-over-month and that revenue has grown 4x from 2019 to 2020.
Nearly $1 trillion is spent on food and grocery delivery across Africa and the Middle East. And Egypt is a big market across both the regions.