Flink is a Berlin-based delivery startup. It has closed its Series B funding round at $150 million which states the company’s value at almost $1 billion. The fresh round of funding further states investor interest in quick commerce, which involves the speedy delivery of groceries and other daily needed products.
Image Source: Tech Crunch
Funding Details
Flink’s overall funding raised is $150 million including $115 million in equity funding and $35 million in the debt issue. This round attracted repeat and fresh investors such as BOND, Mubadala, Northzone, and REWE, a supermarket chain. There are two anonymous investors, and one of them might be Just Eat Takeaway.com since it recently showed interest in merging with Flink.
Flink was valued at nearly $5 billion after DoorDash invested in the company in December 2021. The valuation has since moved slightly down more than $1 billion, which is still valid in the current market and investor attitudes. Flink offers services primarily in a single country and can attract a great deal of funding despite the struggling economic climate.
Flink’s Expansion Strategy
Flink intends to reinvest the new funds to expand its operations in Germany and the Netherlands further with the support of Just Eat Takeaway.com. This partnership plan is still meant to increase Flink’s market position and efficiency through the help of Just Eat Takeaway.com’s delivery service and customers. The long-standing cooperation with REWE, which is among the preferred partners of Flink, will also remain essential for the growth of the company’s services. Flink can provide customers with a wider array of products, and simultaneously, streamline supply processes and guarantee delivery of items in the shortest time possible, with the help of partnering with well-recognized retailers.
The 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 delivering the fast, reliable service that our customers rely on.”
Quotation Source: Tech Crunch
Quick Commerce Model
The hour-or-less delivery system of quick commerce was especially popularized during the COVID-19 outbreak. To reduce contact with other people and isolate them according to the lockdown procedures, consumers went online for purchases of groceries and essentials. This change in consumer behavior was the perfect avenue for quick commerce startups like Flink to enter the market.
Some of the issues prevalent in the environment include high competition levels, high costs of operation, and pressure to scale up which have led to mergers and acquisitions. Flink was an acquisition bait for several large grocery delivery competitors such as Gorillas, Getir, Amazon, and Gopuff. Flink can overcome these challenges to establish itself with operational advantages and strategic alliances.
Conclusion
Flink completed the round with $150 million raised at the threshold of $1 billion in valuations, signifying the robust market and high developmental prospects. Flink can seize new opportunities and shape the developments within the sphere of quick commerce. Being operationally driven and customer-centric, the company is poised for more growth and success in the future years to become a dominant player in the quick commerce sector.
0 Comments