Egypt’s YFS secures $7m in a Series A round

Egypt’s YFS secures $7m in a Series A round

Yalla Fel Sekka (YFS), whose business involves building a network of dark stores and micro-warehouses across Egypt, has secured a $7 million Series A round. YFS has assembled a distributed network of small mini-warehouses and dark stores, where businesses can store the goods very close to their customers to ensure quick deliveries.

The startup is a B2B2C delivery logistics play where the company integrates to the backend of a client and whenever a customer makes an online order, it picks up the order from a dark store built to keep its clients’ products and makes the delivery. 

The platform also provides a broad fleet and dark store and micro-warehouse management serving businesses across multiple verticals, including groceries, pharmacies and e-commerce. 

The startup will be deploying 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 focus on furthering its leadership in machine learning and in developing its innovative operational strategies.

YFS was founded by Khashayar Mahdavi and Yasmine Abdel Karim in 2020, a time where customer behavior and trends have completely shifted to online. According to Redseer, on-demand delivery in the Middle East and North Africa is estimated to reach $47 billion by 2030.

“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 has grown vastly since it launched operations in March 2020 and has already completed two million deliveries in Egypt. YFS has expanded its operations in 5 cities including Cairo, Giza, Alexandria, Mansoura, and Tanta.

“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,” Amer Al Ameri, Head of Venture Capital and Technology Investments at ADQ, added.

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