Business

Breadfast: Egypt’s Rising Star in Grocery Delivery With $257 million Valuation

In the dynamic landscape of Egypt’s grocery delivery market, one company stands out for its remarkable growth and innovation. Breadfast, founded in 2017 by Mostafa Amin, Muhammad Habib, and Abdallah Nofal, has rapidly evolved from a fresh bread and bakery delivery app into a comprehensive grocery delivery platform. Recent financial disclosures from one of its investors, Vostok New Ventures, shed light on Breadfast’s impressive performance in 2023.

Doubling Revenue Amidst Economic Shifts:

According to the financials released by Vostok New Ventures, Breadfast witnessed a doubling of its revenue in USD terms in 2023. This surge is particularly notable considering the backdrop of the Egyptian pound’s significant decline in value during the same period. While specific revenue figures were not disclosed, the report suggests that the actual growth of Breadfast’s revenue could be even higher when accounting for currency fluctuations.

Expanding Reach and Operations:

Breadfast’s success is not solely reflected in its financial metrics but also in its expanding reach and operational capabilities. The company now delivers half a million monthly orders to approximately 150,000 customers across four cities in Egypt. Its evolution into a full-fledged grocery delivery platform allows it to offer over 5,000 Stock Keeping Units (SKUs) and ensures swift delivery within an hour or less.

Financial Milestones and Valuation:

In 2023, Breadfast secured an extension of its Series B round, which propelled its valuation to an impressive $257 million. This infusion of capital signifies not only investor confidence but also Breadfast’s potential for further growth and market dominance.

Beyond its core grocery delivery business, Breadfast has diversified its revenue streams. The company operates a chain of coffee outlets, boasting over ten stores across Cairo. Moreover, Breadfast has embarked on international expansion with the launch of Breadfast Tomorrow, a bread and bakery delivery service, in the Kingdom.

Investor Support and Funding:

Breadfast’s journey has been fueled by substantial investments, with over $30 million raised in total capital to date. Investors include prominent names such as Vostok New Ventures, Endure Capital, Shorooq Partners, and Y Combinator. Notably, Paul Graham, the founder of Y Combinator, is also an investor in the firm, underscoring the company’s credibility and potential for global impact.

Breadfast’s meteoric rise in Egypt’s grocery delivery market exemplifies the power of innovation, strategic expansion, and investor support. As it continues to redefine the shopping experience for consumers and expand its footprint, Breadfast remains a compelling player to watch in the evolving landscape of e-commerce and delivery services, both in Egypt and beyond.

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