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After this year’s wave of consolidations, Flink, one of Europe’s last remaining independent grocery delivery start-ups, will reach €400 million in sales in 2022 before becoming a core We expect the German business to be profitable.
Flink has raised over $700 million from backers such as US delivery company DoorDash and top food app investor Prosus, and has so far won fast delivery from European Gorillas, Weezy, Cajoo and others. It defied the lack of funding in the sector that forced its traders and US-based peers. Buyk and Fridge No More, sold or closed.
In a corner of the e-commerce market notorious for burning cash, Flink wants to position itself as a more sober player. German rival Gorillas consumed nearly all of his $1.3 billion raised before being acquired by Turkey’s Getir in early December.
Flink co-founder and CEO Oliver Merkel said: “We are a very boring company.”
Founded in Berlin in 2020, Flink expects net revenues to grow fivefold from €80m in 2021 to €400m in 2022 (net revenues include passenger tips and VAT). Is not). The company expects growth to slow next year as it cuts investment in expansion to save money and focus on the profitability of its existing business.
Since 2020, Flink has raised over $5.5 billion combined to deliver groceries and other convenience store items from a network of small city warehouses or “dark stores” in just 15 minutes. One of a dozen companies.
Chancellor Angela Merkel said the company was “on very good track” towards profitability, saying that excluding major corporate costs, about 20% of its delivery hubs are now profitable. KPMG audited accounts in Germany.
Flink expects its German business, which accounts for about half of its total revenue, to become profitable in the fourth quarter of 2023. The entire business, including the French and Dutch subsidiaries it launched last year, will be profitable by the fourth quarter of 2024, he added.
The timeline sees Flink raising additional funding next year at a time when capital-intensive businesses such as grocery delivery are losing investor support given rising interest rates and a looming recession. suggesting that it is necessary.
Despite many consumers facing inflationary pressures, sales were “very resilient”, with an average order value of over €30, excluding promotional vouchers, according to Frink, which is a is an important indicator for ensuring profitability.
With the public market effectively closed to loss-making new listings, an initial public offering could be years away. Merkel said the business would be ready in two to three years, but Frink may not pursue an IPO anytime soon.
“It takes a lot of money to build a business this quickly,” Merkel said, adding that Frink was “well funded” by the end of next year. “We have strong commitment from our existing investors.”
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