Egyptian logistics and technology startup OneOrder has raised $3 million in a new funding round that will help the company improve its internal operations and core technology.
The round was led by Nclude, an investment platform primarily focused on fintech innovation.
Egypt-based early-stage venture capital firm A15 and Delivery Hero Ventures, a fund backed by global food delivery giant Delivery Hero, also participated in the latest round.
OneOrder said in a statement on Monday that OneOrder will use the new funds to upgrade its technical talent, internal operations, increase sales, increase market share and proprietary technology.
The company will also “invest more in expanding its offline presence and expanding its warehouse footprint” in Egypt, the MENA region.
“Beside [from] By increasing efficiency, we are reducing costs and impacting restaurants’ bottom lines,” said Tamer Amer, co-founder and CEO of OneOrder.
“Joining a renowned global investor with deep knowledge and broad expertise in our industry, we look forward to the next phase of rapid growth.”
OneOrder was launched in October 2021 to address the inefficiencies and structural issues restaurants face in sourcing supplies, such as inconsistent pricing, unreliable quality and irregular delivery times.
The company’s platform allows restaurateurs to interact with many small, fragmented suppliers and vendors from whom they source their produce, including meat, vegetables and equipment.
The latest funding brings the company’s total raised to date to $10.5 million.
OneOrder is using technology to address supply chain pain points in Egypt’s $40 billion Hotel, Restaurant and Catering (HoReCa) market, such as insufficient product availability, price volatility, product consistency, on-time and accurate delivery, and lack of working capital financing, it said.
The startup aims to use artificial intelligence and machine learning to ensure restaurants don’t run out of stock during high and low seasons, and to eliminate waste.
Brendon Blacker, Managing Partner at Delivery Hero Ventures, who joins OneOrder’s board of directors, said: “The explosive growth of the business last year is a testament to the tremendous value that OneOrder’s industry-focused solutions can deliver to its HoReCa clients.”
In Egypt, the most populous country in the Arab world, OneOrder has an addressable market of 400,000 restaurants, which collectively spend $40 billion a year, the company said. Lacking a vertically integrated supply chain, these restaurants spend 6% to 7% of their revenue on ensuring supply chain stability.
Venture capital funding in Egypt more than doubled in the first half of this year from a year earlier to $307 million, ranking third in the MENA region, according to start-up data platform Magnitt.
The number of deals in the country rose 22% annually to 78 in the first six months of this year, the firm said.
Updated: December 5, 2022 at 1:43pm