As we launch the live webinar series “How to Become an Angel Investor and Support Egypt’s Booming Startups,” together with GIZ Egypt, we list 10 Egyptian startups that have secured top investment rounds in 2021. From shipping to e-commerce, these stellar startups are entirely transforming the Egyptian startup landscape.
BY WESAM OSAMA
Investors today see the Egyptian market as a profitable and future-oriented market, where it is increasingly the new go-to investment location of the future. The number of investments and deals brokered in the Egyptian startup sector is witnessing growth, collecting 26 percent of all deals in the Middle East and North Africa (MENA) region, with a total value of $194 Million in the first half (1H) of 2021, according to CEO of Egypt’s e-Information Technology Industry Development Agency (ITIDA), Amr Mahfouz.
As we launch the live webinar series “How to Become an Angel Investor and Support Egypt’s Booming Startups,” together with GIZ Egypt, we list the top Egyptian investment rounds in 2021, according to Financial Stories and Daily News Egypt.
1- Trella
Trella is the largest truck marketplace in Egypt, and has closed a $42 million Series A funding round, comprising debt and equity. The round included $30 million in equity investment and $12 million as debt financing.
The equity investment was co-led by Maersk Growth and Raed Ventures, and included notable venture capital firms such as Algebra Ventures, Vision Ventures, Next Billion Ventures, Venture Souq, Foundation Ventures, 4DX Ventures and Flexport.
“Our aim is to go deep in our current markets while keeping our eyes close on Africa, where we believe the opportunity is really big,” says Omar Hagrass, Co-Founder and CEO at Trella.
2- MaxAB
MaxAB, is Egypt’s leading wholesale food and grocery B2B ordering App. The startup has raised $40 million in Series A financing which was led by RMBV, with participation from the IFC, Flourish Ventures, Crystal Stream Capital, Rise Capital, and Endeavor Catalyst as well as MaxAB’s existing investors, Beco Capital and 4DX Ventures.
“We saw that there is a massive role in optimizing this supply chain using technology so that we can have the right amount of products at the right place at the right time,” says El-Megharbel, the chief executive who left Careem in 2018 to start MaxAB.
3- Breadfast
Egypt’s leading grocery delivery platform, Breadfast, offers scheduled and on-demand delivery of groceries and other household essentials. The startup has secured $26 Million in a Series A round, led by Vostok New Ventures and Endure Capital. The round also included participation from JAM Fund, led by Tinder’s co-founder, YC continuity fund, Shorooq Partners, 4DX Ventures, and Flexport.
Breadfast has an iOS and Android App, and delivers in under 60 minutes. The company is planning to reduce this time to just 20 minutes by utilising the new funding to increase its web of so-called ‘dark stores’.
“We started out baking and delivering fresh bread, and today we are able to give Egyptians access to thousands of items of their basic supermarket supplies at the click of a button. Our mission is to change how people consume their daily essentials in Africa and the Middle East and, through our dynamic technology and deep understanding of the end-to-end supply chain process in the region, we are growing a simple idea into a product we believe can benefit millions of people across the MENA and Sub-Saharan regions,” says Mostafa Amin, Co-Founder and CEO at Breadfast.
4- Paymob: Online Payments Gate-through
Paymob, a Fintech startup that enables digital payments, recently raised $18.5m in a Series A round. The round was led by Global Ventures, with the participation of A15 and FMO. It is the largest-ever Series A raised by a Fintech company in Egypt.
In July 2020, the company raised $3.5 million as its first tranche of Series A investment. It has raised an additional $15 million from the same investors, led by Dubai-based VC firm Global Ventures. Other investors include Egyptian investment fund A15 and Dutch development bank FMO.
“The market opportunity in the region is unprecedented. The large digital payments gap still exists, and we are delighted to be working with progressive-thinking regulators to address this,” says Islam Shawky, Co-Founder and CEO at Paymob.
5- Homzmart
Cairo-based furniture e-commerce marketplace Homzmart helps customers by providing them with a large variety of furniture options and sellers to choose from. For sellers, the startup makes it easy to expand their customer base by using its technology and marketplace.
Homzmart has raised $15 million in a Series A led by MSA Capital and Nuwa Capital. The round also included the participation of Rise Capital, Impact46, EQ2 Ventures, and Outliers Venture Capital. It had previously raised $1.3 million in a seed round in February 2020.
The company’s marketplace collects designs, price ranges and other details of its retailers’ products. It solves high distribution costs for them by providing access to consumers who have flexible financing options. In addition, Homzmart incorporates AI to optimise content for retailers and intelligent tools to help customers with their purchasing decisions.
6- Bosta
Bosta helps small businesses with logistics, offering next-day delivery to customers. It also handles exchange shipments, customer returns and cash collection.
The company has closed a Series A investment of $6.7 million. U.S. and Middle East VC firm Silicon Badia led the round, with participation from 4DX Ventures, Plug and Play Ventures, Wealth Well VC, Khwarizmi VC, and other regional and global investors. This investment comes a year after the company raised a $2.5 million round, taking its total investment to $9.2 million.
“Solving the last mile delivery problem for e-commerce companies is very crucial for the e-commerce business to grow in Egypt and the Middle East. As a company, we are committed to helping the e-commerce sector grow by providing them with speedy delivery, quality, and exceptional service. All while making sure our prices are one of the most competitive to help them with their tight unit economics and help them grow a profitable business. At Bosta, with our customer-driven approach and finding tech-driven solutions, we make sure that we are able to hit the three pillars while keeping our costs as low as possible,” says Mohamed Ezzat, Founder and CEO at Bosta.
7- Telda
Egyptian digital banking startup, Telda, aims to revolutionize banking by providing an online-only experience as it enables customers to create a free account to send and receive money, and also a card to use online, in stores, make withdrawals and pay bills.
The company has raised $5 million in a pre-seed funding round that was led by American VC giant Sequoia Capital. This investment round will help digitise how Egyptians save, send, and spend money. The startup affirmed that it is the first company to receive a license from the Central Bank of Egypt (CBE) under its new regulations to digitally issue cards and onboard customers.
“First movers will have to make all the effort with regulators and the bank and try to pave the way. So this was one of the hardest parts. Convincing regulators to trust and regulate our banking business and provide financial payment services to our consumers,” says Ahmed Sabbah, the CEO at Telda.
8- Koinz
Founded in 2018 by Hussein Momtaz, Ahmed Said, and Abdullah Al Khalidi, Koinz is a restaurant customer acquisition and retention platform. Through its suite of products, it enables restaurants to learn insights about their online and offline customer base.
The Cairo-based platform has raised $4.8 million in a seed round that was led by Justin Mateen, the founder and former CMO of the leading global dating app Tinder. The round also includes the participation of Africa-focused VC 4DX Ventures and angel investors from Egypt, Turkey, and Saudi.
The company currently has over 80 employees in Egypt, UAE, and Saudi. With the latest funds, it aims to grow the team and expand to more markets in the Middle East.
9- Flextock
Flextock is an Egyptian on-demand warehousing and fulfilment platform that helps consumers and businesses manage e-commerce and fulfilment operations from warehousing and logistics to delivery and cash collection.
The company has closed a $3.25 million pre-seed investment led by Egyptian VC Foundation Ventures, Y Combinator, MSA Capital, CRE Ventures, Alter Global, Jameel Investment Management Company (JIMCO), B&Y Ventures Partners and Access Bridge Ventures. The company also received angel investments from an unnamed Sequoia Capital scout, investors in the GCC region and Flexport.
Flextock plans to put the funding into strengthening its presence in Egypt, technology, recruitment, and regional expansion.
10- Dayra
Dayra is an Egyptian data-driven Fintech company providing financial services to unbanked gig-workers and micro-businesses via API integration. The company was founded in early 2020 by Omar Ekram with the chief aim of improving the lives of millions of unbanked individuals in MENA, starting with Egypt.
Since its launch, Dayra has grown at a monthly growth rate of over 50%. It has allowed thousands of unbanked individuals to access their income early through tens of thousands of transactions worth millions of dollars, with an average loan size of USD 500.
The company has joined Y Combinator and raised $3 million in a pre-seed round that includes a mix of equity and debt financing. The round was led by Tanmiya Capital Ventures, EFG EV, EFG Hermes, and different angel investors.
Do you want to support Egypt’s Booming Startups and invest in them?
Apply to the live webinar “How to Become an Angel Investor and Support Egypt’s Booming Startups” here and join us on the 24th of November.
