Flink based in berlin Delivery StartupIt has just completed its Series B funding round at $150 million, valuing the company at around $1 billion. This new round of funding further reflects investors' interest in quick commerce, which involves quick delivery of groceries and other daily need products.
image Source: Tech Crunch
Financing Details
The total funding raised by Flink is $150 million, including $115 million in equity funding and $35 million in debt issues. This round attracted new and emerging investors such as Bond, Mubadala, Northzone, and supermarket chain REWE. There are two unknown investors, and one of them may be Just Eat Takeaway.com as it has recently shown interest in merging with Flink.
Flink's valuation peaked at around $5 billion after DoorDash invested in the company in December 2021. The valuation has since dropped to a little over $1 billion, which is still valid in the current market and investor outlook. Flink primarily provides services in a single country and could attract a lot of funding despite the struggling economic environment.
Flink's expansion strategy
Flink intends to reinvest the new funds to expand its operations in Germany and the Netherlands in collaboration with Just Eat Takeaway.com. This partnership plan aims to enhance Flink's market position and efficiency with the help of Just Eat Takeaway.com's delivery service and customers. Long-term cooperation with REWE, which is one of Flink's preferred partners, will also remain essential for the development of the company's services. Flink can provide customers with a wide range of products, and at the same time, streamline supply processes and guarantee the delivery of items in the shortest possible time with the help of partnerships with well-recognized retailers.
Founder and Managing Director of Flink said, “With the support of our investors, we are entering an exciting new phase of growth. This investment will enable us to further expand our footprint, improve operational efficiency, and continue to provide the fast, reliable service our customers rely on.”
Quote sources: Tech Crunch
Instant commerce model
The hour-or-less delivery system of quick commerce became especially popular during the COVID-19 pandemic. To minimize contact with other people and isolate themselves in accordance with lockdown procedures, consumers moved online to shop for groceries and essentials. This change in consumer behavior was the perfect way for quick commerce startups like Flink to enter the market.
Some of the issues prevailing in the environment include high competition level, high cost of operations, and pressure to increase scale, which has led to mergers and acquisitions. Flink was an acquisition bait for many large grocery delivery competitors such as Gorilla, Getir, Amazon, and GoPuff. Flink can overcome these challenges to establish itself with operational advantages and strategic alliances.
conclusion
Flink closed the round by raising $150 million, with a valuation of $1 billion, reflecting a strong market and high growth prospects. Flink can capitalize on new opportunities and shape developments in the quick commerce space. Being operationally driven and customer-centric, the company is poised for even more growth and success in the future years to become a major player in the quick commerce space.
