Investment opportunity from pre-IPO strategy
GetFaster — an express delivery startup from Germany. The company delivers consumer goods from its own dark stores.
GetFaster creates wow-effect by fast delivery — but retains customers with a balanced assortment and affordable prices every day. The delivery is made online via mobile or web, assembled in a dark store, and delivered by couriers on different types of transport. The company is already operating in 8 German cities and processes weekly orders for €33 000.
- Total funding: €1.5 млн
- Last round valuation: €15 млн
- Last round date: декабрь 2020
- Lead investors: Startup Lab, AltaiR Capital
- Company stage: Seed
- Potential: 230% by the end of 2021
About the company
- The company launched a delivery service in January 2021 and in 4 months of operations support the weekly growth of orders at a fantastic level of 15–20%.
- GetFaster focuses on developing its service in German cities with a population of 25.000+, which allows covering 53% of the population.
- The company achieved annualized revenues of €1.7 million just 17 weeks after launch.
- With an average weekly check of €30, the company gained 25% of the weekly spending on groceries for the average German household.
- GetFaster plans to develop white label products to achieve higher business margins.
- Bridge round goal is to increase the company’s working capital, which should provide organic revenue growth.
- Founders are negotiating new funding round with a €120 million valuation.
According to McKinsey research, in 2020 online sales of grocery products in Europe grew on average by 55%, in Germany — by 39.9%. At the same time, the German grocery retail market showed an increase of 12.3%. The popularity of online sales in many ways stimulated by a lockdown, but McKinsey analysts predict that buying food on the Internet will be in demand after the pandemic. There is significant room for growth: by the end of 2020, the share of online sales in grocery retail in Europe accounted for only 5.3%, in Germany — 2.5%.
Moreover, Germany is considered the biggest retail market for consumer goods in Europe.
GetFaster’s closest competitors have a different geographic focus. Gorillas operate in German cities with a population of 500.000+(16 million in total), Flink is focused on cities with a population of 300.000+ (26 million), while GetFaster is focused on cities with a population of 25.000+ (36 million).
- In the first 4 months of operations, GetFaster increased its sales by an average of 20% every week. With the current momentum, the company will be able to process more than 10.000 orders per day in 8–12 months.
- Today, more than 65% of customers are retained, which helped to achieve revenue of €1.7 million on an annualized basis.
- Using promotional codes instead of direct advertising has reduced
the cost of attracting a client by 25%. Promo codes attracted 486 new clients, while the client base reached 5.189.
- Now the company is raising €30 million to aggressively enter
new territories, enlarge product range and improve infrastructure.
- The company aims to achieve €2 billion in revenues in the next 4–5 years.
Founders and Management
Anton Zakharov (CEO) is an entrepreneur with experience in e-commerce who built and sold a leading Russian startup in the field of online outsourcing for grocery retailers.
Dmitry Bergelson (CBDO), former CBDO at X5 Retail Group / Pyaterochka, founder of the INNORETAIL.VC retail technology venture studio and Holmes & Moriarty consulting company.
- Competition with other delivery startups and large retail chains. However, dark stores and proper segmentation should allow GetFaster to win a significant market share.
- The company has initial confirmation of demand, however, is at a very early stage of development. Further scaling may slow down growth.
Option №1 — a merger by:
- A traditional German or international discounter (Aldo, Lidl, Edeka-Netto) — the most likely option
- An international e-commerce player with a strategic interest in food markets (Amazon, Ali Express, etc.),
- Restaurant delivery company (Uber Eats, Deliveroo, etc.)
Option №2 — exit the deal on the secondary market
The company is expected to have a $150 million valuation in case of maintaining the current growth pace.
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