Courier for fast grocery delivery service Zapp is based in the UK.
Zapp
LONDON – British Formula One driver Lewis Hamilton has backed fast grocery delivery startup Zapp as part of a larger $200 million investment in the company.
The London-based company said Friday that it has raised new cash in a Series B funding round led by venture capital firms Lightspeed Venture Partners, 468 Capital and BroadLight Capital. Existing investors Atomico, Burda and Vorwerk Ventures also participated.
Zapp did not disclose a valuation and declined to comment on the size of Hamilton’s stake.
Hamilton’s participation marks a rare start-up investment of the F1 racing star. The Mercedes driver has won seven world drivers’ championship titles, and shares the record with retired German driver Michael Schumacher.
Founded in 2020, Zapp’s service allows people to buy snacks, drinks and essentials from so-called “dark shops”, small warehouses built with the sole purpose of is to prepare delivery orders online. The app promises a delivery time of just 20 minutes.
British Formula One driver Lewis Hamilton.
Bryn Lennon – Formula 1 | Formula 1 via Getty Images
Zapp is one of many emerging retailers in Europe vying for shoppers’ wallets with the promise of super-fast delivery. It is competing with a number of well-funded rivals, including the Turkish company Getir and the German companies Gorillas and Flink.
Zapp claims that it is different from its competitors because its app provides a digital alternative to a convenience store, rather than an online version of a supermarket like Tesco or Sainsbury’s. The company currently operates in seven cities including London, Amsterdam and Paris.
“With this new funding, we will focus on achieving profitability in our existing markets as well as bringing Zapp to new customers globally,” Zapp co-founder Joe Falter said in a statement. An announcement.
The company said it also plans to spend the new capital to improve its customer experience and supply chain. Last year, Zapp opened a 25,000-square-foot distribution center in London to keep merchandise flowing into its dark stores.
JP Morgan acted as financial advisor to Zapp on the deal, the company said.
Express delivery companies have experienced equally rapid growth since the outbreak of the coronavirus pandemic. Getir was most recently valued at $7.7 billion by investors, while Gorillas landed a $1 billion funding round led by the German food delivery company. Delivery hero, valuing it at more than $3 billion. Meanwhile, DoorDash led a $750 million investment in Berlin-based startup Flink.
As the space gets more crowded, there are more and more signs of consolidation, with Getir buying Weezy, the London startup, and Gorillas snapping up French rival Frichti.
Tech investors and executives are beginning to question the long-term sustainability of such startups. Tim Steiner, CEO of retail technology company Ocado, said on Wednesday that he notices “slight differences between all the players out there” and is not surprised to see consolidation in the market. school.
“We don’t see that as a winner,” Steve O’Hear, vice president of strategy at Zapp, told CNBC. “Just like the broader grocery market, there’s room for different players, and customers have historically demonstrated that they value choice.”
