The Egyptian Q-commerce platform Appetito, which delivers groceries and household products to doorsteps, has acquired Lamma, a quick commerce app operating in Tunisia and Morocco, for over $10M.
Appetito didn’t disclose the size of the deal in its statement, and neither did the CEO Shehab Mokhtar when quizzed about it via email.
Mokhtar declined to comment on the speculated price. However, sources familiar with the matter said the deal size was between $10 million to $15 million. The deal is expected to close by the end of Q3 2022.
“We’ve been very cost-efficient with solid unit economics from day one. We were able to do so much with so little is extraordinary evidence,” replied Mokhtar when asked how Appetito financed the acquisition, having raised just $2.5 million. “Moreover, we’ll be closing an eight-figure round soon to foster our expansion even further.”
Founded in 2020 by CEO Yassir El Ismaili El Idrissi, ex-GM at Careem, Hamza Guesmi, and Koussi Aymen, Lama is a q-commerce platform delivering daily products in 30-45mn max. Everyday products cover Groceries, Food, Personal Care, Electronics & even essential fashion.
Appetito plans to become the most significant q-commerce player in frontier and emerging markets.
This deal makes Appetito the most significant q-commerce player in Africa; based on the number of markets, it operates in Egypt, Morocco, and Tunisia. “No other q-commerce player in Africa operates in such big markets,” Mokhtar told TechCrunch.
Since the pandemic hit, q-commerce platforms have been subject to a lot of VC interest — and cash — as consumer habits changed and people shopped for groceries online with the expectation to get them in minutes, as promised by these platforms.
Appetito’s acquisition of Lamma is a first in the African market, albeit among small players. They operate similar models, particularly with the timing of their deliveries ranging between 45 minutes to two hours; Appetito also allows scheduled daily or weekly deliveries. This timing model differs from the “under 20-minute” pitch from the likes of Breadfast and Rabbit.
Appetito claims to be achieving double-digit margins despite the downsizing and shutdowns faced by q-commerce platforms globally.
The company’s prioritization of quality and affordability over speed and convenience is one of the reasons Mokhtar is confident in the company’s continuous growth. Getir, Zapp, and Gorillas, for instance, have trimmed their workforce, while Australia’s Send shut down.