EGYPT – Another win for hyper-localized on-demand delivery startups in Egypt as Yalla Fel Sekka (YFS), has successfully raised US$7m in its latest funding round.
The Series A funding round was led by DisruptAD, a venture platform of Abu Dhabi-based investment firm ADQ.
YFS plans to deploy the new funding to expand its presence in cities across Egypt and the MENA region while continuing to build out its network of hubs and optimize productivity.
It will further focus on uplifting its leadership in machine learning and in developing its innovative operational strategies.
“We are very pleased to welcome DisruptAD alongside our original seed investors as we see tremendous growth and opportunities ahead.
“YFS’s accelerating growth in its fleet size, pool of drivers, micro-warehouses, and dark stores is creating a powerful network effect, enabling us to dominate instant delivery in Egypt,” added Khashayar Mahdavi, co-founder and Chief Strategy Officer of YFS.
The two-year-old leverages on its proprietary, data-driven technology to meet customers’ expectations and provide the only reliable and affordable instant delivery service for businesses in urban communities in Egypt.
With its digital platform and diverse fleet of 1,000 drivers of motorcycles and vans, YFS is already pioneering the instant delivery sector for groceries, food, e-commerce consolidators, retailers, and pharmaceutical products in the country.
The start-up has become the country’s top provider in the field through its experienced ops team and constant efficiency gains, leading to a high utilization rate.
YFS has already completed two million deliveries in Egypt and is active in Cairo, Giza, Alexandria, Mansoura, and Tanta.
“We are now delivering over 10,000 orders per day while being gross margin positive only 18 months after launch in a vibrant but competitive market.
“Our gross merchandise volume is growing at a monthly rate of 20% and our customer retention is above 90%,” said Yasmine Abdel Karim, CEO, and co-founder of YFS.
YFS is building the critical infrastructure backbone for next-generation logistics services in the region and is seeking to develop the broadest urban distributed network of dark stores and micro-warehouses in Egypt.
Amer Al Ameri, Head of Venture Capital and Technology Investments at ADQ, concluded, “Supporting the YFS team and their execution capabilities represents our long-term commitment to boost impactful future-focused solutions.
“We are actively deploying capital into innovative businesses to sustain value creation with long-term economic benefits. By bolstering YFS’s development plans we will enable Khashayar and Yasmine to expand their leadership position in Egypt and beyond.”
In November 2019, the YFS secured US$2.5 million seed funding from US-based Flybridge Capital and I Squared Capital.
The latest funding takes the total funds raised by the Egyptian startup to US$9.5 million.