Borzo Raises $35M to Expand Delivery in Emerging Markets
Borzo Rebrands and Secures $35 Million in Series C Funding
For individuals residing in nations like India, the Philippines, Russia, or Vietnam, the convenience of services such as Amazon Prime and Gorillas may be limited. Dostavista, a “crowdsourced” same-day delivery platform, offers a comparable solution, similar to DoorDash Drive or Lalamove in Malaysia.
Origins and Expansion
Initially established in Russia, the company began by engaging gig economy workers through a unique approach. They developed a game where participants delivered virtual items, ultimately transitioning to real-world deliveries. This innovative thinking facilitated its expansion into markets often overlooked by larger delivery companies.
Rebranding to Borzo
The Amsterdam-based startup is now undergoing a rebranding process, adopting the name “Borzo” to unify its operations across ten countries. This change coincides with a successful $35 million Series C funding round.
Investment Details
The funding round was spearheaded by Mubadala, a UAE-based investor. Additional participants included VNV Global, RDIF, Flashpoint Venture Capital, and several others.
Pandemic-Driven Demand
The need for affordable, same-day delivery services experienced significant growth due to the pandemic, impacting both developed and developing nations alike.
Borzo’s Delivery Network
Borzo leverages its gig economy workforce to provide delivery services utilizing any route, mode of transportation, and accommodating various package weights and sizes. The company has developed sophisticated algorithms to optimize multiple delivery routes simultaneously.
Founder’s Statement
Mike Alexandrovski, founder of Borzo, stated: “With this new funding, we are progressing towards our objective of becoming a leading courier delivery company in each market where we operate. We believe brand consistency and operational synergy are crucial to achieving this goal, which is why we have rebranded as Borzo.”
Current Scale and Reach
Founded in 2012, Borzo currently serves 2 million customers and boasts a network of 2.5 million couriers. The company operates in ten countries: Brazil, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Russia, Turkey, and Vietnam.
Order Volume and Revenue
Borzo reports fulfilling over 3 million orders each month, with an annual gross revenue run rate approaching $150 million.
Mubadala’s Perspective
Faris Al Mazrui, head of Russia & CIS at Mubadala, commented: “The fundamental shift in eCommerce occurred with the increased reliability and convenience of on-demand delivery services. We recognize a clear vision and opportunity in the evolving on-demand delivery landscape within Borzo. They have successfully expanded globally, establishing a competitive presence in ten international markets.”
Previous Funding
Prior coverage included Borzo’s $15 million Series B round, which was led by Vostok New Ventures, with participation from existing investors Flashpoint and AddVenture.
