Appetito, an Egyptian grocery delivery startup has raised $450,000 in seed funding
Appetito, a Cairo-based grocery startup that only launched a few months ago, has raised $450,000 in seed funding.
A group of Saudi angel investors led by Ahmed Al Alola, an early-stage investor who was one of the early backers of Saudi’s grocery appSary, and Afropreneurs Fund, an African early-stage technology fund that has previously funded top African-based startups such as Andela, Flutterwave, and Trella, were among those who raised the funds.
Jedar Capital, an emerging VC focused on early-stage startups in the Middle East, Africa, and Emerging Asia, also participated in the round.
Appetito, which launched in March 2020, uses a dark store model, in which products are purchased from suppliers, processed in mini fulfillment centers, and then shipped to consumers.
The company began with a wide variety of private label products, delivering to all areas of Cairo, Giza, and Alexandria the next day and on time.
The company recently extended its product range to include over 1000 SKUs from well-known market brands and joined the hyper convenience race by offering customers delivery in under 60 minutes in select areas.
Shehab Mokhtar, the founder and CEO of Appetito, had this to say about the raise:
“We’re proud of what we’ve accomplished in just a few months after launching. We’re fortunate to have such prominent investors on our side. With their support and the team we’re putting together, I’m sure we’ll be in the lead in the global grocery delivery race.”
“Observing the drastic shift in consumer behavior post-COVID-19, the grocery delivery market is rapidly expanding in the region,” said Ahmed Al Alola. I believe Appetito is well placed to lead that segment and capture the market by providing a superior experience to what is currently available in the African space, thanks to its stellar team.”
Idris Bello, Managing Partner of the Afropreneurs Fund, said “Our investment in Appetito’s seed round is based on our well-proven strategy of backing strong founders with unique local knowledge and a focus on execution. We’re impressed with what Shehab and his team have accomplished so far, and we’re optimistic about the Egyptian early-stage ecosystem.”
“We are excited to be a part of Appetito’s journey in Egypt and the MENA region,” said Sherif Nessim, Founder and Managing Director of Jedar Capital. We had been watching Appetito’s execution and the team’s growth-oriented strategy with very limited resources from the beginning, and it was clear to us that they were resilient and focused.
With the digital revolution taking place in Egypt, where online commerce is skyrocketing and saw a huge leap with Covid, Appetito is better suited for growth. More and more consumers are embracing online grocery shopping as their norm now. Appetito’s model, which focuses on dark stores rather than aggregating from grocery retail stores, we believe, would bring value and distinction to the industry, as well as play a key role in operating efficiency and gross margin contribution. We look forward to assisting them in their preparations for expansion and development in Egypt and beyond.”
Source: Tech Gist