Egyptian grocery delivery startup Breadfast has secured $10 million from the European Bank for Reconstruction and Development (EBRD) as part of its Series B2 round, pushing the company’s valuation close to $400 million.
The investment, led by Novastar Ventures, aims to scale Breadfast’s operations across Egypt by expanding its fulfilment centers in Cairo, Giza, Alexandria, and Mansoura, while also entering new cities.
The EBRD’s backing comes on the heels of positive updates from existing investor VNV Global. In its latest quarterly report, the Swedish firm noted that its 7.9% stake in Breadfast is now valued at $30.2 million, almost double its initial investment of $16.9 million made in 2021.
That performance stands out, especially when compared with VNV’s other African bets such as Wasoko, which has seen a sharp valuation drop, and SWVL, which has faced difficulties on public markets.
Founded in 2017 by Mostafa Amin, Abdullah Nofal, and Muhammad Habib, Breadfast began as a bakery delivery service and has grown into a quick-commerce platform that delivers over 6,000 items in under an hour.
Also read, Egyptian Grocery Delivery Startup Breadfast Closes $26M Series A Funding
Its vertically integrated model, controlling everything from sourcing and baking to fulfilment and last-mile delivery, has helped it maintain service reliability and operational efficiency in a tough market.
Breadfast currently handles nearly one million orders a month, operates more than 30 fulfilment centers, and has an active user base of over 300,000. In 2024, the company crossed $150 million in annual recurring revenue, and its customer retention rate sits above 80%.
VNV Global highlighted the startup’s dollar-based GMV retention, which exceeds 100% after 20 months, as a positive sign, especially considering Egypt’s inflation and currency headwinds.
Looking to grow beyond groceries, Breadfast has also launched “Breadfast Pay,” a fintech offering designed to provide savings tools, deposits, withdrawals, and a branded payment card.
This multi-service strategy, similar to super-apps in Asia, could help Breadfast deepen customer relationships and diversify its income streams.
While the startup’s current valuation is based on a private market transaction and falls under Level 3 assets under IFRS guidelines, the EBRD’s investment adds weight to the company’s track record.
Growing into new verticals and regions, all eyes will be on whether it can replicate its current operational efficiency on a broader scale.
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