New York-based hedge fund Luxor Capital, and Egyptian property developer Marakez, also participated in the deal. Luxor has previously backed companies like Zomato, Glovo, and Gopuff. Elmenus is their first investment in the Middle East.
Elmenus aims to use the funds to expand to more cities in Egypt and personalize the ordering and delivery experience for its customers. A part of the money will also be used different tools to help restaurants scale.
Founded in 2011 by Amir Allam, Elmenus helps people discover and order food from over 12,000 restaurants in Egypt.
“We are accelerating the adoption of online ordering by users while enabling restaurants with new verticals – to help them scale. This funding demonstrates the investors’ strong belief in our position in Egypt, and our capability to dominate the market.”
“We are accelerating the adoption of online ordering by users while enabling restaurants with new verticals – to help them scale.”Amir Allam – Founder, Elmenus
The investment by Fawry, per statement, is part of their new strategy to acquire minority stakes in fast-growing Egyptian startups. The company will work closely with Elmenus to develop solutions for restaurants and consumers in Egypt, noted the statement without sharing the specifics.
“By this investment, we show our desire to not only be a payment catalyst but to be a strategic partner to Elmenus, its customers, restaurants, and its riders. The Egyptian food space has high growth potential, with technology disrupting the status quo, as customers’ needs in food service provision rapidly change.”
The startup had originally started as a food discovery platform and expanded into delivery with its own fleet, a little over eighteen months ago. Its food ordering business has grown over 4 times (year-over-year) in the last one year. The platform currently serves 1.5 million users in Egypt.
The round takes the total capital raised to date by the Egyptian startup to about US$20 million.
Earlier this year, the startup secured a Series B investment from David Buttress, the former chief executive officer (CEO) of global food-ordering firm Just Eat, who also joined the startup’s board as it plots aggressive expansion.