Hey there, exciting news in the world of online grocery delivery! JOKR, the company known as DAKI in Brazil, has just announced that it secured approximately $50 million in Series D financing, bringing its post-money valuation to a whopping $800 million. This latest funding round, led by Convivialité Ventures and featuring new investor Lombard Odier, showcases the immense potential and resilience of JOKR in the Latin American market. So, let’s dive in and explore the background, details of the funding, strategic interests, and the company’s plans for future growth.
Background
JOKR’s resilience in the Latin American market
Over the past few years, the online grocery delivery sector has seen its fair share of ups and downs. However, JOKR has managed to carve out its own niche and thrive in the Latin American market, particularly in Brazil. This resilience has allowed the company to navigate challenges and position itself as a leader in the industry.
Previous funding rounds and valuation
Prior to the Series D funding, JOKR had already secured significant investments through various funding rounds. Notably, the company had a post-money valuation of $1.3 billion after a $50 million Series C funding round in February. However, given the market conditions and industry adjustments, JOKR’s valuation has decreased to $800 million. Despite this decrease, JOKR’s founder and CEO, Ralf Wenzel, believes it reflects the current market conditions appropriately.
Explanation for decreased valuation
Wenzel explained that while other companies faced significant valuation cuts, JOKR’s 40% decrease is in line with market adjustments. It’s important to note that this decrease in valuation came without any additional strings attached, board seats, or specific preferences. Additionally, JOKR’s new investor and strategic partner played a role in validating and supporting the $800 million valuation.
New investor and strategic partner
Convivialité Ventures, the investment arm of wine and spirits giant Pernod Ricard, led the Series D funding round for JOKR. Lombard Odier, a new investor, joined the round along with existing investors such as G Squared, GGV, Balderton Capital, Monashees, Greycroft, Tiger Global Management, and JOKR’s founders. This diverse group of investors showcases the widespread strategic interest in JOKR, not only from the retail incumbents but also from consumer packaged goods companies.
Series D Funding
Led by Convivialité Ventures
Convivialité Ventures, the investment arm of Pernod Ricard, took the lead in the Series D funding round for JOKR. With their experience and expertise in the wine and spirits industry, Convivialité Ventures brings valuable insights and strategic support to JOKR as it continues to expand its presence in the online grocery delivery market.
New investor Lombard Odier
Lombard Odier, a new investor, also joined the Series D funding round for JOKR. With their investment, Lombard Odier demonstrates its belief in the potential and financial performance of JOKR in the Latin American market. This new partnership opens up exciting possibilities for both parties involved.
Existing investors in the round
In addition to Convivialité Ventures and Lombard Odier, JOKR’s existing investors, including G Squared, GGV, Balderton Capital, Monashees, Greycroft, Tiger Global Management, and JOKR’s founders, also participated in the Series D funding round. Their continued support and investment reaffirm JOKR’s position as a leading player in the online grocery delivery industry.
Strategic Interest
Interest from retail incumbents and consumer packaged goods companies
JOKR’s unique value proposition and strong track record of success have attracted strategic interest from retail incumbents and consumer packaged goods companies. This interest validates JOKR’s financial performance and underscores the potential for further growth and success in the industry.
Validation of financial performance
The combination of strategic interest from retail incumbents and consumer packaged goods companies serves as a validation of JOKR’s financial performance. This recognition allows the company to operate within a framework that represents the strength of its financial performance relative to the market conditions in the industry.
Growth After Decline
Improvement in financial performance
JOKR’s financial performance has seen significant improvement over time. Although specific details were not provided, CEO Ralf Wenzel disclosed that the company’s gross profit is above 25% and that no single grocery order is subsidized. These improvements in financial performance are key indicators of JOKR’s ability to grow and achieve profitability in the online grocery delivery market.
Focus on Brazil’s grocery market
JOKR has focused its efforts on Brazil’s grocery market, which is projected to reach $80 billion by 2026. This strategic decision has allowed JOKR to tap into an underserved market and position itself for long-term success. By continuously improving its financial performance and expanding its offerings, JOKR solidifies its place in the competitive landscape of Brazil’s grocery industry.
Achieving profitability
With the new investments secured through the Series D funding round, JOKR is well on its way to achieving profitability. CEO Ralf Wenzel has expressed the company’s short-term goal of becoming profitable, which will further strengthen its position in the market and allow for increased flexibility in pursuing future opportunities.
Increase in retention rates and ordering frequency
JOKR’s focus on customer satisfaction has resulted in increased customer retention rates and ordering frequency. Through its commitment to excellent service and reliable deliveries, JOKR has built a strong customer base that continues to support the company month over month. These positive trends bode well for JOKR’s future growth and success.
Success of advertising program
JOKR’s advertising program has been a significant contributor to its overall revenue. By enabling brands to advertise and promote their products on the DAKI platform, JOKR has gained a competitive edge in the market. The success of this advertising program has generated significant interest from consumer packaged goods brands and further solidifies JOKR’s position as a valuable platform for advertising and promotion.
Next Steps
Expansion of grocery offerings
JOKR plans to expand its grocery offerings by providing a full range of “shopping missions” in Brazil. Starting with instant deliveries, JOKR has expanded to offer scheduled deliveries where customers can choose a 30-minute time slot. With this expanded range of options, JOKR can cater to the diverse needs and preferences of its customers, further enhancing its position in the market.
Increase in product count
As part of its growth strategy, JOKR has significantly increased the number of products it offers. Unlike its competitors in the instant grocery delivery space, JOKR now boasts an impressive selection of 10,000 products. This expansion of product offerings allows JOKR to cater to a wider customer base and capture a larger share of the grocery market.
Development of existing metropolitan areas
JOKR plans to focus on developing and expanding its presence in existing metropolitan areas. By strengthening its operations and infrastructure in these areas, JOKR can provide even faster and more efficient deliveries to its customers. This localized approach ensures that JOKR remains responsive to the needs of its target market and maintains a competitive edge in the industry.
Short-term goal of profitability
One of JOKR’s immediate goals is to achieve profitability in the short term. With the newly secured funding, the company has the resources and runway to work towards this goal. By operating with a profitable model, JOKR can sustain its growth, drive further innovation, and continue to deliver exceptional service to its customers.
Long-term opportunities and flexibility
The Series D funding round and increased capitalization “unlock a whole range of different opportunities” for JOKR. This includes the potential to re-enter markets that the company had previously exited, providing more flexibility in pursuing expansion opportunities. Furthermore, looking ahead, JOKR is open to exploring the possibility of becoming a public company, which could present additional avenues for growth and success.
Exciting times lie ahead for JOKR as it secures new funding, strengthens its financial position, and continues to grow in the online grocery delivery market. With a focused strategy, commitment to customer satisfaction, and a diverse group of strategic investors, JOKR is well-positioned for success and poised to make a significant impact in the Latin American market.
