The European Bank for Reconstruction and Development (EBRD) has committed a $10 million investment into Breadfast, Egypt’s leading online grocery platform, as part of its Series B2 funding round. This strategic injection signals strong institutional confidence in a startup that has emerged as a standout performer in Africa’s venture capital landscape, with its valuation now estimated at $382.3 million.
Led by Novastar Ventures, the funding round is aimed at accelerating Breadfast’s expansion across Egypt. The company plans to scale its operations by increasing the number of fulfilment centres in its current strongholds—Cairo, Giza, Alexandria, and Mansoura—while also entering new cities to broaden its national footprint.
This growth strategy is backed by recent data from Swedish investment firm VNV Global, a key Breadfast investor. In its Q2 2025 report, VNV revealed that the fair value of its 7.9% stake in Breadfast has surged to $30.2 million, up from an initial investment of $16.9 million in 2021. This performance stands in stark contrast to other African startups in VNV’s portfolio, such as Kenya’s Wasoko, which saw a 25% valuation drop, and mobility firm SWVL, which continues to struggle on public markets.
Founded in 2017 by Mostafa Amin, Abdullah Nofal, and Muhammad Habib, Breadfast began as a bakery delivery service and has since evolved into a full-scale quick-commerce platform. Today, it offers over 6,000 products, ranging from fresh produce and meats to household essentials, all delivered within 60 minutes.
Breadfast’s success is rooted in its vertically integrated model. By owning its supply chain—from in-house bakeries and sourcing to dark stores and last-mile delivery—the company has managed to overcome Egypt’s logistical challenges and thin retail margins.
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.
CEO Mostafa Amin
This strategy has yielded impressive results. Breadfast now operates over 30 fulfilment centres, processes nearly one million orders per month, and serves more than 300,000 active users. In 2024, it surpassed $150 million in annual recurring revenue, with a customer retention rate exceeding 80%. VNV Global also highlighted Breadfast’s dollar-based GMV retention, which remains above 100% after 20 months, a strong indicator of sustainability amid Egypt’s inflation and currency volatility.
The EBRD’s investment aligns with its mission to promote competitive and inclusive economies. According to the bank’s project summary, the funding will support Breadfast’s expansion, proprietary technology upgrades, and an increase in private-label product offerings—enhancing margins and market differentiation.
On the inclusivity front, the expansion is expected to generate substantial employment opportunities across fulfilment centres and central operations. Breadfast has committed to launching comprehensive training programs focused on digital, logistics, technical, and managerial skills, benefiting both white- and blue-collar workers.
With its grocery operations firmly established, Breadfast is now branching into financial services through its newly launched fintech arm, Breadfast Pay. This initiative aims to offer services such as deposits, withdrawals, savings accounts, and a branded payment card. Inspired by the “super-app” model popular in Asia, Breadfast Pay is designed to deepen customer engagement and unlock new revenue streams by serving Egypt’s large unbanked and underbanked population.
Although Breadfast’s valuation is based on private market transactions and classified by VNV Global as a Level 3 asset under IFRS (meaning its value is derived from non-public inputs), the continued investor confidence and EBRD’s strategic backing suggest a robust and scalable business model.
As Breadfast expands into new cities and ventures into fintech, the key challenge will be maintaining its operational efficiency and strong unit economics—hallmarks of its success so far.
