$26M for Egypt's grocery delivery Breadfast
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Egypt’s grocery delivery startup Breadfast has successfully secured a stellar $26M in its latest funding round. The Series A round was co-led by Vostok New Ventures and Endure Capital and recorded participation from JAM Fund, YC Continuity Fund, Shorooq Partners, 4DX Ventures, and Flexport.
Founded in 2017 by Mostafa Amin, Muhammad Habib, and Abdallah Nofal, Breadfast offers scheduled and on-demand delivery of groceries and other household essentials, having initially started its business with a focus on baked goods. Breadfast also announced the launch of Breadfast Now, the first native cloud supermarket in Africa and the Middle East, offering a variety of native products including fresh bakery, produced daily within their production facilities, in addition to a growing variety of breakfast delights and general grocery goods.
Despite a slower H1’2021 and a 10-deal drop in deals since full-year 2020, the E-commerce industry in MENA picked up by Q3 2021, raising $71M more than total capital deployed in full year 2020. As recorded in our Q3 2021 EVM E-commerce Venture Investment Report, Egypt climbed a rank to become the most active E-commerce geography by number of deals in Q3 2021, and jumped 2 ranks to become the most-funded by volume of capital deployed. It was one deal by E-commerce startup MaxAB that raised 60% of that capital by Q3 2021, Egypt-based E-commerce startups like Homzmart, GoodsMart, Capiter, and Taager raised major rounds in 2021. This rise in E-commerce is paralleled with a complementary growth of the FinTech and Transport & Logistics sectors in Egypt, driving their 258% and 541% YoY growth by Q3 2021 respectively.
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The Egypt-based team launched as an F&B startup that baked and delivered fresh bread before repurposing their assets and pivoting into a much faster growth market working on grocery delivery. Today Breadfast, staying true to the origins of the name, delivers thousands of items in basic supermarket supplies to Egyptians across Cairo, Giza, and Mansoura. Amin, co-founder and CEO of Breadfast highlighted “Our mission is to change how people consume their daily essentials in Africa and the Middle East and, through our dynamic technology and deep understanding of the end-to-end supply chain process in the region, we are growing a simple idea into a product we believe can benefit millions of people across the Mena and Sub-Saharan regions.”
Breakdast will utilize its newly acquired funds to shorten its delivery window from 60 minutes to 20 minutes by growing its network of dark stores in the country. Breadfast will also be launching deliveries in Alexandria in early November 2021. Finally, the Egypt-based delivery startup plans on expanding into eight new cities across Egypt and Sub-Saharan Africa. while further developing and supporting its Tech stack. In light of this growth enabling investment, JAM Fund’s Justin Mateen, also co-founder of Tinder, concluded with his vision towards the Egypt-based team “Breadfast is defining how consumers in emerging markets plan and carry out their grocery shopping. The Breadfast team has managed to build a complex operation, that offers a seamless experience for customers. Supported by a massive demographic and favorable operating expenses in emerging markets, Breadfast is poised to become a leader in the grocery q-commerce market. I am excited about supporting this team in their future plans.”
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