Cairo-based grocery delivery service Appetito has raised a $450,000 Seed round of funding, reports Business Africa Online. Ahmed Al Alola and a group of Saudi Angel investors led the round along with Afropreneurs Fund, with participation from Jeda Capital.
Formed in March of 2020, Appetito originally started out with a chain of delivery-only (or “dark”) grocery stores that offered next-day and pre-scheduled grocery delivery service. The company recently pivoted to a more on-demand model, offering delivery of 1,000 SKUs in 60 minutes or less to certain parts of Cairo.
Appetito’s funding is the first we’ve covered for an Africa-based grocery startup this year, but it is certainly part of a larger trend we’ve been following. Grocery-related startups (grocery delivery in particular) are hot with investors all over the world right now.
In Europe, Gorillas, Getir, and Glovo have each raised nine-digit funding rounds for their particular fast grocery delivery services. In the U.S. goPuff raised $1.5 billion to scale out its chain of dark convenience stores. And in China, grocery app Xingsheng Youxuan raised $2 billion and Nice Tuan raised $750 million
A big reason for the boost in grocery app funding is the global pandemic, which pushed a record number of people into grocery e-commerce. With various lockdowns enforced in different parts of the world throughout 2020, people limited trips outside their homes. Grocery apps and delivery services became a way to help cut down on human-to-human interaction when getting food.
As vaccinations continue to roll out in different countries, We will have to wait and see if consumers keep up with the online grocery or return once again to stores in-person. One thing is for sure, post-pandemic, there will be a lot more grocery delivery options for people than ever before.
For its part, Appetito said it will use its new funding to expand across Egypt and beyond.
