Yalla Fel Sekka (YFS), a Cairo-based delivery service startup has closed $7 million in Series-A funding, led by DisruptAD, Abu Dhabi government-owned holding company ADQ’s venture platform, according to a statement form the company.
The two-year-old company specializes in instant on-demand delivery and dark store management. It has a fleet of motorcycles and vans with 1000 drivers catering to groceries, e-commerce consolidators, retailers and pharmaceutical products.
YFS was founded by Yamine Abdel Karim and Khashayar Mahdavi in March 2020. The company has so far completed two million deliveries in Egypt and has expanded its operations in five different cities including Cairo, Giza, Alexandria, Mansoura and Tanta.
YFS delivers over 10,000 orders per day and manages a network of dark stores and micro-warehouses on behalf of its large and small-scale customers.
"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.” said CEO and co-founder Abdel Karim. “Our gross merchandise volume is growing at a monthly rate of 20% and our customer retention is above 90%.”
The startup is expected to deploy the fresh funds to expand its footprint across more Egyptian provinces and the MENA region.
Meanwhile, the team will continue to work on enhancing its productivity, operations and machine learning technology, said the press release.
“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 Mahdavi, YFS co-founder and Chief Strategy Officer.
With the latest deal, the total funds raised by YFS have reached $ 9.5 million. In November 2019, the company secured $2.5 million seed funding from US-based Flybridge Capital and I Squared Capital.
The same investors had contributed to the latest round alongside lead investor DisruptAD, ADQ’s venture platform and Kuwait-based Kharafi Group.
(Reporting by Noha El Hennawy; editing by Seban Scaria)
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