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London Tech Week

Rabbit: Egypt online startup scores $11M funding to deliver groceries in 20 minutes

Image credits: Rabbit

The COVID-19 pandemic has reshaped the grocery-retail landscape globally at an unprecedented rate, globally. With favourable policies and rising demands in the market, online grocery delivery is predicted to outgrow itself in the coming years especially with startups like Deliveroo, Gorillas, Getir fighting for the top spot. 

According to experts, consumers could spend up to $100B annually by 2022 or 2024 in online grocery shopping alone. Consequently, the bar to thrive had drastically increased for the existing and upcoming companies.

Rabbit secures $11M

Based out of Cairo, Rabbit is setting sail to transform the future of retail. Recently, the company has raised $11M in pre-seed funding, a record high for the Middle East & Africa regions. 

The funding comes from an international investors base including Global Founders Capital, Foundation Ventures, Raed Ventures, MSA Capital, and Goodwater Capital.

“The Rabbit team is setting a new standard for the grocery industry in Egypt and the broader region. They offer a new experience to customers compared to traditional grocers and local stores,” says Lorenzo Franzi, an investor at Global Founders Capital.

Talal Alasmari, the founding partner of Raed Ventures, says, “We believe that the founders of Rabbit, with their ambitious vision and extensive experience, possess the ability to lead in the Ultra-fast delivery domain, not only in Egypt but in the region as a whole.”

Delivery under 20 minutes

Founded in October 2021 by Walid Shabana, Ismail Hafez, and Tarek El Geresy, Rabbit is an on-demand ultra-fast delivery company that promises to deliver groceries, cosmetics, electronics, and more under 20 minutes by using dark stores.

The company buys items from these five categories from third-party vendors, stores them in its warehouse, and sells through its app with a fee for customers. 

“We are building a business with speed as a core part of the DNA, which is evident in how we operate and work. We measure things by seconds because ultimately, we are not in the business of retail or convenience, we are in the business of time,” says the company in the press release. 

Rabbit is currently operating in central Cairo – Mohandeseen, Zamalek, Maadi, and Nasr City. The Egyptian company is planning to expand its operation to several major cities in the next 12 months. 

“It took us just 130 days from idea to first order. We have been live since mid-October. We know that our customers love to get their everyday shopping done in 20 minutes. Our relentless focus on creating an unprecedented magical customer experience is what brings every Rabbit to work every day,” says the company in the press release. 

What about rivals?

Rabbit expects to face intense competition from another Cairo-based online grocery delivery company in Egypt and AfricaBreadfast.

Earlier this month, the Egyptian company raised $26M funding in a Series A round from investors, including Vostok New Ventures, Endure Capital, and others. 

Recently, the startup announced that it would begin to complete deliveries in less than 20 minutes. As per the report, Breadfast currently serves 170,000 households with more than 2,500 supermarket items in Egypt.

Besides Breadfast, Rabbit competes against Good Smart, Fakahany, Appetito, Trolley Delivery, Trolley, Weelo, Masry Market, FreshSource, SevenTail, and others.

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