In its second-largest acquisition, Amazon buys the company for $970 million.
The investment will significantly boost regional and global expansion.
MOSCOW, September 26, 2012 - Delivery Club, a Russian-based online food delivery marketplace announces second investment round raising USD 4 million for further development from Addventure Venture capital Fund. The investment will significantly boost regional and global expansion.
Based on the Addventure market research, the annual market volume only in Moscow exceeds USD$700 million, while all over Russia already reaches USD 1 billion. Feeling the new trends, many angel investors and giant venture funds turn their heads to this industry. Still, many companies, including global players, who enter the market endure failure, while others raise new investments, grow business and cover more and more regions in Russia, CIS and Eastern Europe.
"We are very excited and impressed with the performance the Delivery Club team has shown since the initial investment. They managed to succeed in three most important development steps: built an excellent, state of the art IT product, including an app both for partners and end-users; strengthened their positions on the fastest growing online food delivery market and built an impressive partners and customers portfolio," says Sergey Karpov, managing Partner of Addventure.
Sergey calls Russian and CIS market development trends more than positive and predicts that Russian market will be the biggest in Europe by 2015. "Unlike other players Delivery Club also operates in such segments as groceries, organic food and supplements, which are also very fast growing markets in Russia, exceeding $500m annually. Thus we offer a one-stop-shop for our customers for everything connected with food," continues Sergey.
About Delivery Club
http://www.delivery-club.ru - a company, processing more than 4000 orders daily (currently constituting 30% of all online orders in Moscow and Saint Petersburg). Number of processed orders grows for 20-30% every month and forecasts predict more than 7 000 daily orders by the end of 2012. Since its creation 1.5 years ago the company has not only accomplished profitability milestones, but got a reputation and status of an expert. Thanks to its rapid growth and development, Delivery Club raised the series B financing round of USD 4 million from Addventure, which will help in starting aggressive local and global expansion.
Addventure is a pioneer institutional seed investment partnership focused on Russia-based Internet companies. It is an independent player on the Russian venture capital market and is managed by a team of partners with extensive Internet industry expertise, attracting international and Russian investment background and building strategic partnerships history. Unlike many other investment funds and business angels, Addventure provides startups not only with funding but first and foremost with "smart money", the team's expertise and business networking opportunities.