After a pre-series A operation in November 2021, Appetito is acquiring Tunisian peer Lamma through a merger by absorption deal. Once completed, the process will create a new major q-commerce and e-commerce player.
Grocery delivery startup Appetito announced Wednesday (June 1), the acquisition of its Tunisian peer Lamma. The startup did not disclose the acquisition value but several media suggest it is between US$10 and 15 million.
The two startups decided to merge their operations under the brand Appetito, which will be operational in Morocco and Tunisia (Lamma’s markets) and expand into new West African territories.
“We believe it’s the best time to expand in Africa to solve the huge inefficiencies in the retail supply chain […] Having Lamma on board will put us on track to become the largest q-commerce player in the continent, transforming the lives of millions of people and creating thousands of direct & indirect jobs,” said Appetito’s CEO Shehab Mokhtar.
The acquisition deal is announced seven months after Appetito raised US$2 million in pre-series A funding, last November. The funds raised were used to expand the startup’s presence in Egypt and plan for regional growth.
Once completed (by Q3-2022), the merger by absorption plan will make Appetito the largest q-commerce and e-commerce player in Africa. From the three markets where it operates (Egypt, Morocco, and Tunisia), it will enter new continental markets, starting from West Africa.
According to Shehab Mokhtar, the q-grocery market still has strong growth potential. To illustrate his point of view, he informed that just 2% of the operators in Egypt’s US$60 billion grocery market are online. Also, the Middle-East and West African markets are fragmented and only a few firms have already succeeded in becoming major regional e-commerce players, he added.
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