EGYPT – Ordera, a Cairo-based food delivery startup has raised funds in a seed funding round to help it expand its team and launch its services in new cities.

The startup which was launched last year by Karim Abdel Kader, Noha Bassiouny and Abeer Mostafa, allows users to pre-order and pay for food online.

Once food is ordered and paid for, users are provided with either contactless drive-through or an on-the-go pick-up options when picking up their orders.

The startup says it has witnessed a surge in the number of users and orders as well as the number of restaurants and outlets listed on its platform since the COVID-19 pandemic.

The rise in demand for its services influenced the start up to raise further funding in order to expand its services to other cities in Egypt.

Ordera took part in the Saudi Arabia-based accelerator programme run by 500 Startups in collaboration with Misk Innovation last year.

Its participation in the accelerator programme allowed it to attract a Saudi investor, DAAL VC which is currently the startups lead investor.

Other leading investors in the food delivery startup are Alexandria Angels and AUC Angels.

“Post-COVID-19, F&B and retail markets’ conditions changed dramatically. Innovative startups are those who see the opportunity and provide real solutions for business,” Abdulrahman Alqahtani, chief executive officer (CEO) at DAAL said.

“This is how we valued the opportunity in Ordera. Technology, sustainable business model, and scalability potentials are the factors that drove our attention,” Alqahtani explained.

He further noted that “with the right and ambitious team in place, we highly believe in the success story that we can build together.”

Ordering food online, has over the past few years become a daily practice for Egyptian but its demand spiked during the COVID-19 period when movement was limited and social distancing encouraged.

According to Statista, the country’s online food delivery sector is worth $74 million, and is expected to grow to $131 million by 2024.

The overall value of the food delivery market is thought to be higher, since many restaurants in the country have shunned the online platforms and deliver meals directly to their customers, who call in rather than use an app to order.

According to data from elmenus, the penetration of orders placed online falls below 5 per cent of total delivery orders, which means 95 per cent of all orders for takeaway or delivery are still placed on the phone.

But while this presents an attractive opportunity for growth, the market can be difficult to navigate, especially now during the uncertainty brought about by the Coronavirus Disease (Covid-19).

Ordera has however been able to successfully navigate the tough operating environment and now looks forward to spreading its wings across the nation and expanding its market share.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE