Appetito, a Cairo-based grocery startup has raised $450,000 in seed funding to support its expansion and growth plans in Egypt and beyond.
The round of funding was led by Ahmed Al Alola alongside Afropreneurs Fund, which has also invested in Andela, Flutterwave and Trella and MENA’s Jedar Capital.
According to Appetito Founder and CEO Shehab Mokhtar: “We’re proud of what we have achieved in just a few months from our launch. We’re privileged to have such prominent investors backing us. With their support and the team we’re building, I’m confident we will be in a leading position in the global race of grocery delivery.”.
Founded in March 2020, Appetito operates through a dark stores model, where products are sourced from manufacturers, stored in mini fulfillment centers then delivered to household customers. The startup is already working with a range of clients across Cairo, Giza, and Alexandria with next-day and pre-scheduled deliveries. It also recently added more than 1000 SKUs from well-known consumer brands and added the under 60-minute delivery service for its clients in selected areas.
Ahmed Al Alola mentioned “Observing the radical change in consumer’s behaviour post-COVID-19, the grocery delivery market is expanding rapidly in the region. I believe Appetito – with its stellar team – is well positioned to lead that segment and capture the market by delivering superior experience compared to what is currently available in most of the African space.”
On his part, Idris Bello, Managing Partner, Afropreneurs Fund said ” Our investment into Appetito’s seed round follows on our proven thesis of investing in strong founders with unique local insights and a bias towards execution. We are excited by what Shehab and his team have achieved so far, and we are very bullish on the Egyptian early-stage ecosystem.”
Appetito’s model focuses on dark stores rather than aggregating from grocery retail stores is expected to add value and differentiation in the Egyptian market and play a pivotal role in terms of operational efficiency and gross margin contribution.
Sherif Nessim, Founder and Managing Director of Jedar Capital said “We are excited to be part of Appetito’s journey in Egypt and MENA region. We have been watching Appetito’s execution and the team’s growth-focused approach with very limited resources early on, this was a clear message to us on how resilient and focused they are. Appetito is best suited for growth with the digital transformation happening in Egypt where online commerce growth is skyrocketing and saw a huge leap with covid, more and more customers now are adopting online grocery shopping as their standard now.”