Cajoo Raises $40 Million for Instant Grocery Delivery

Cajoo Secures Funding to Enhance Competitive Edge in Food Delivery

The French startup, Cajoo, is currently in the process of raising capital to strengthen its position within the rapidly evolving and increasingly competitive food delivery sector. Notably, this funding round is being led by Carrefour, a prominent supermarket chain.

Headline (previously e.ventures) is also contributing to this investment, alongside existing investors Frst and XAnge.

Strategic Partnership with Carrefour

Carrefour’s involvement extends beyond mere financial support. Cajoo will leverage Carrefour’s established procurement infrastructure. This collaboration will enable Cajoo to broaden its product offerings to customers.

The Rise of Rapid Grocery Delivery

Cajoo is a key player among startups pioneering a new approach to grocery delivery. The company utilizes a network of dark stores and maintains direct control over its product inventory.

This model allows customers to order groceries without concerns about being available to receive the delivery. Deliveries typically arrive within approximately 15 minutes.

Competitive Landscape

The startup operates in a crowded market, facing competition from companies like Getir, Gorillas, Flink, and Zapp. It also presents indirect competition to traditional retailers and their established online ordering platforms.

Capital Intensive Growth

“This sector demands significant capital investment,” explained Henri Capoul, co-founder and CEO. “We manage the complete supply chain. Expansion necessitates the establishment of new hubs and the procurement of products.”

Expansion Plans in France

With $40 million in funding secured, Cajoo intends to reinforce its leading market position within its domestic market. Currently, the service is available in ten French cities, including Paris, Lille, Lyon, and Bordeaux.

Market Validation and Regulation

Despite facing competition, particularly in Paris, Henri Capoul views this as positive market validation. “Numerous companies have secured substantial funding, but this is a regulated industry.

We maintain ownership of our products and must adhere to regulations. We cannot consistently operate at a loss,” he stated.

Future Consolidation and Local Champions

While anticipating some level of industry consolidation, Cajoo is focused on maintaining its independence. “European leaders will initially be national leaders.

Some players are currently using discounts to compensate for product shortages, but I believe the future of this category will be defined by three or four strong local companies with a presence in multiple countries,” Capoul added.

A Leading French Player with International Ambitions

Currently, Cajoo is the sole French company operating at this scale within the rapid delivery sector. The company prioritizes establishing itself as the market leader in France.

However, it is also exploring expansion into other markets, including Belgium, Italy, Spain, Portugal, and potentially Eastern European countries.

Team Expansion

The company’s immediate focus is on growing its team. The number of employees at the headquarters is projected to double by year-end.

Significant growth is also anticipated within the operations and delivery teams, with an expected fivefold increase by the end of the year.

Delivery Model: Employees and Partners

Cajoo employs some delivery personnel directly, but also collaborates with both contracting companies and freelance workers. This approach presents similar challenges to those faced by companies like Deliveroo and Uber Eats.

Addressing a Real Need?

While Cajoo presents a compelling business model, consumers must consider whether it addresses a genuine need or is simply a convenient option. The rise of instant delivery services could potentially have a significant long-term impact on traditional brick-and-mortar retail.