Appetito, a Cairo-based dark store grocery delivery service, has secured US$2 million in a pre-Series A funding round to help it scale quickly.
Golden Palm Investments, DFS Lab, and a collection of renowned angel investors and family offices also participated in the investment round, which was led by Jedar Capital, a US-based early-stage VC focused on MENA and Emerging Asia.
Appetito is a grocery delivery platform founded in March 2020 by Shehab Mokhtar that sources products from producers, store them in warehouses, and sends them to customers via tiny fulfillment centers. Customers can place orders through the company’s website, mobile app, or social media pages.
“Egypt’s grocery retail business is estimated to be worth $60 billion. Because 50% of the Egyptian population is under the age of 25, the fact that just 2% of it currently online presents a huge opportunity for growth, according to Appetito founder and CEO Shehab Mokhtar.
Sherif Nessim, the general partner at Jedar Capital, who also invested in Appetito’s seed round, said he was impressed by the startup’s ability to build an “A-plus” team and foster positive company culture, resulting in a 10X increase in order volume and revenue.
“I look forward to Appetito’s next phase as they expand to serve additional locations in Egypt and begin preparing for regional growth,” he said, adding that “quick commerce and fast grocery delivery business models have been gaining ground regionally and globally.”
In Cairo, the company now operates seven dark stores, with hopes to expand to 150 by 2024.
Read more on Tech Gist Africa:
Breadfast, an Egyptian grocery delivery startup, has raised a $26 million Series A funding round.
ShipBlu, an Egyptian eCommerce fulfillment startup, has raised $2.4 million in seed funding