Cairo, Egypt – Egyptian grocery delivery startup Breadfast has raised $10 million from the European Bank for Reconstruction and Development (EBRD) as part of its Series B2 funding round, bringing its valuation close to $400 million. The round was led by Novastar Ventures and aims to scale operations across Egypt, including the expansion of fulfilment centers in Cairo, Giza, Alexandria, and Mansoura, while entering new cities.
The EBRD’s investment follows positive updates from existing investor VNV Global, which recently valued its 7.9% stake in Breadfast at $30.2 million, almost double its initial 2021 investment of $16.9 million. The performance contrasts with VNV’s other African investments such as Wasoko and SWVL, which have faced valuation and market challenges.
Founded in 2017 by Mostafa Amin, Abdullah Nofal, and Muhammad Habib, Breadfast started as a bakery delivery service and has evolved into a quick-commerce platform offering over 6,000 items delivered in under an hour. Its vertically integrated model — covering sourcing, baking, fulfilment, and last-mile delivery — has been key to maintaining service reliability in Egypt’s challenging market conditions.
The company currently processes nearly one million orders a month, operates 30+ fulfilment centers, and serves over 300,000 active users. In 2024, it surpassed $150 million in annual recurring revenue with a customer retention rate above 80%. VNV Global also highlighted Breadfast’s dollar-based GMV retention of over 100% after 20 months, a notable achievement amid Egypt’s inflation and currency volatility.
Breadfast is also expanding into fintech with the launch of Breadfast Pay, offering savings tools, deposits, withdrawals, and a branded payment card. This multi-service strategy, inspired by Asian super-apps, is aimed at deepening customer engagement and diversifying revenue streams.
Although Breadfast’s valuation is based on private market transactions and classified as Level 3 assets under IFRS, the EBRD’s backing underscores investor confidence in the startup’s growth prospects. As it ventures into new verticals and regions, the challenge will be replicating its operational efficiency on a larger scale.
