Grocery delivery start-up raises $200m to expand presence in London
- UK grocery delivery startup Zapp has raised $200 million in new funding.
- Lightspeed Venture Partners led the round, which included investment from Lewis Hamilton.
- The fundraising comes amid a consolidation in the fast grocery delivery industry.
Fast grocery delivery startup Zapp has raised $200 million in a funding round led by US tech investor Lightspeed Venture Partners.
The company, based in Kent, near London, offers on-demand delivery of essential groceries in 20 minutes.
Like many delivery startups, Zapp serves customers from several micro-delivery centers in the cities where it operates (currently London and Amsterdam). In recent years in Europe, a slew of fast-growing delivery startups have raised huge sums from investors to scale rapidly across the continent.
Consolidation has taken hold in the sector. This month, German delivery startup Gorillas began acquisition talks with Frichti, a French company. In August, the American delivery company Gopuff acquired a British competitor, Dija.
“We believe customer experience is how you win in this space, so we try not to pay too much attention to other players and stay fully focused on delivering for our customers,” said Steve O. ‘Hear, vice president of strategy at Zapp, to Insider. .
“That said, we’ve always taken a slightly different strategy to the rest of the market by focusing squarely on convenience retail rather than trying to disrupt the pre-planned weekly grocery store, and focusing our investments on capital in fewer cities, focusing on winning in key megacities like London rather than trying to launch in dozens and dozens of cities at once.”
Zapp has raised $300 million since its inception in 2020. The Series B was led by Lightspeed, 468 Capital and BroadLight Capital, alongside its existing investors Atomico, Burda and Vorwerk Ventures. Seven-time Formula 1 world champion Lewis Hamilton has also joined the funding round.
The startup said it was growing month-over-month by double-digit percentages, and its co-founder Joe Falter said its recurring annual revenue was “tens of millions of dollars” just London.
Zapp said its focus on convenience will allow it to cement its position in London against startups like Gopuff and Gorillas and that it will use the funding to continue improving its supply chain infrastructure across the city.