Egypt’s Breadfast Secures $10M, Nears $400M Valuation to Scale Its Full-Stack Grocery

Egyptian Startup Breadfast Secures $10M from EBRD

Egyptian grocery delivery service Breadfast has raised $10 million in a funding round led by the European Bank for Reconstruction and Development (EBRD). This investment is part of the company's Series B2 round and boosts its valuation to nearly $400 million. The funding will be used to expand Breadfast's operations throughout Egypt. The company plans to open more fulfilment centers in key cities like Cairo, Giza, Alexandria, and Mansoura, and enter new cities.

This new investment follows positive reports from existing investor VNV Global, a Swedish firm. VNV's 7.9% stake in Breadfast is now valued at $30.2 million, nearly double its original 2021 investment of $16.9 million. This performance is especially notable given the struggles of other African companies in VNV's portfolio.

Founded in 2017, Breadfast has grown from a bakery delivery service into a quick-commerce platform that delivers over 6,000 items in under an hour. Its success is attributed to its vertically integrated model, which controls the entire process from sourcing to last-mile delivery, ensuring efficiency and reliability.

The company currently processes around one million orders per month, has over 30 fulfilment centers, and a user base of more than 300,000. In 2024, Breadfast's annual recurring revenue surpassed $150 million, and it maintains a customer retention rate above 80%. In addition to its core delivery service, Breadfast has launched "Breadfast Pay," a fintech service offering savings, deposits, withdrawals, and a branded payment card. This multi-service strategy aims to strengthen customer loyalty and diversify revenue streams.

The EBRD's investment validates Breadfast's strong performance and growth potential as it looks to expand into new markets and business areas. All eyes are now on whether the company can maintain its operational efficiency as it scales.

https://techbuild.africa/breadfast10m-400m-valuation-full-stack-grocery/