Delivery Startup Jokr Gets $170 Million to Grow in Grocery Boom
(Bloomberg) -- Fast-delivery grocery delivery startup Jokr raised $170 million in financing to fuel its expansion across the Americas and Europe after rolling out its services just three months ago, emerging as one of the better funded companies in the burgeoning sector.
Chief Executive Officer Ralf Wenzel, a former executive at Delivery Hero SE, said the new funding round led by GGV Capital, Balderton Capital and Tiger Global Management will allow it to enter new cities and expand in current locations, including its home base of New York City. He declined to comment on how much of the round was debt versus equity, or the company’s valuation.
“With that recent financing round we will be able to keep on building out Jokr as a global platform for instant delivery but also expand geographically,” Wenzel said. “We do have a realistic chance to revolutionize retail.”
Jokr has some operations in Europe but is largely focused on markets in North America and South America, including the U.S., Brazil and Mexico. Wenzel said the company aims to be consumers’ go-to-source for more than just groceries, also selling goods such as cleaning products and pharmaceuticals for delivery in minutes.
In the last four months, the company has built about 100 small fulfillment centers or “dark stores,” Wenzel said, and expects to roughly double that number by the end of the year. Jokr employs most of its riders as full-time employees, as opposed to using a gig-employee model.
Venture capitalists have poured billions of dollars into companies like Jokr since the start of the year, hoping to take a share of the grocery industry. Last month, Turkey’s Getir raised $555 million while Germany’s Flink got $240 million.
Still, the businesses must find a way to become profitable as more established food-delivery companies like Delivery Hero SE are expanding their own grocery offerings.
Other investors that backed Jokr in its latest funding round include Activant Capital, Greycroft, FJ Labs, Kaszek, Monashees, and HV Capital, The company is also backed by SoftBank Latin America Fund.
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