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GetFaster

E-commerce

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. 

GetFaster
GestFaster pre-IPO Raison Asset Management

Investment metrics

  • 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.

Market perspectives

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%.

Graphics GetFaster
GetFaster pre-IPO Raison Asset Management

Moreover, Germany is considered the biggest retail market for consumer goods in Europe. 

Competitive analysis

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).

График GetFaster
GetFaster pre-IPO Raison Asset Management

Financial performance

  • 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.

Risks

  • 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.

Deal exit

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.

How to buy GetFaster shares?

To buy GetFaster shares, contact our managers.