Investments

Cairo-based online grocery startup GoodsMart secures additional investment from Algebra Ventures

Cairo-based online grocery startup GoodsMart has raised additional funding from Algebra Ventures, ahead of its upcoming Series B round, the startup announced today. Algebra had previously invested $750,000 in Series A round of the startup in May 2017.

Founded in 2013 by Amr Fawzi and Ahmed Sudan, GoodsMart has a slightly different operational model than most of the online grocery startups in the region. The startup operates only in residential compounds, enabling residents to sign up and receive their groceries on frequent basis.

Once a user signs up using GoodsMart mobile apps or by calling them, their team visits them and installs a delivery box at their doorstep. After the installation, the users can place their grocery orders using GoodsMart mobile apps by 9 pm and receive them the next day between midnight and 6 am.

The customers don’t have to be present to receive their orders as there’s no human interaction involved in the order and delivery process. The startup apart from regular grocery products also sells fresh fruits, vegetables, homecare and personal care, meat and poultry, stationery and even pharmaceuticals. According to their CEO, they currently have over 25,000 products available on the platform.

GoodsMart charges the customers a monthly subscription fee of EGP 100 (about $5) for the delivery box to offer free delivery, their co-founder and CEO Amr Fawzi told MENAbytes, adding that they have also signed agreements with some real estate developers to bear this cost and offer it as a free service to their residents.

Their apps also come with features that allow customers to repeat their orders and help them control their budget. Customers can make the payments through credit card or charge their virtual wallet by leaving cash inside the GoodsMart delivery box.

Amr Fawzi, GoodsMart’s founder and CEO, commenting on the occasion, said, “Client happiness is our goal. Every single person on the team works to push client satisfaction to unprecedented levels. This is clearly reflected in our customer testimonials and organic engagement on social media, and in our cohort retention rates of over 70% a year in.”

Tarek Assaad, Managing Partner with Algebra Ventures, said, “GoodsMart is a uniquely innovative company with tremendous upside potential. Their customer-centric approach continues to deliver exceptional results. Since we made our first investment, Amr and his team have improved operational efficiency, added key members to the executive team, signed strategic partnerships, and strengthened the company’s technology platform. We’re delighted to continue supporting GoodsMart beyond our initial investment.”

GoodsMart according to the statement has grown its business three-fold in the last six month. The startup will be using the investment to further scale its business, upgrade its warehouse facilities, and strengthen its operational capabilities.

The investment will also be used to expand its team, Amr Fawzi, said in a conversation with MENAbytes, adding that they expect to close the Series B round within six months.

Update – 8:20 AM GMT: The story was updated with some more details after our conversation with the co-founder and CEO of GoodsMart.

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