Egyptian online grocery platform Breadfast has secured a $10 million investment from the European Bank for Reconstruction and Development (EBRD) as part of its Series B2 funding round, led by Novastar Ventures, a VC firm specialising in African markets. The deal comes as Breadfast’s valuation hits $382 million, according to recent disclosures by VNV Global, positioning it among Egypt’s most valuable startups.
The fresh capital will be used to expand Breadfast’s operations across Egypt, including scaling its network of in-house bakeries, dark stores, and logistics infrastructure, while entering new cities. Backed by a vertically integrated model that controls the supply chain end-to-end, Breadfast has been able to overcome Egypt’s logistics hurdles and maintain sustainable profit margins.
CEO and Co-Founder Mostafa Amin said:
“Building a grocery marketplace alone wouldn’t work. Owning the supply chain was necessary because the margins are thin, and reliability in emerging markets is key.”
Today, Breadfast serves over 300,000 active users, operates more than 30 fulfilment centres, processes nearly 1 million orders monthly, and boasts a customer retention rate exceeding 80%. In 2024, it surpassed $150 million in annual recurring revenue, with VNV Global reporting that its dollar-based GMV retention has remained above 100% after 20 months despite inflation and currency volatility.
The EBRD’s investment aligns with its mission to foster competitive and inclusive economies, supporting Breadfast’s expansion, proprietary technology enhancements, and growth in private-label product offerings. The expansion is also expected to create significant employment opportunities, with training programs covering digital, logistics, technical, and managerial skills for both white- and blue-collar workers.
