Greece's Pop Market Secures $3.5M for Dark Store Grocery Delivery

A New Contender in the European Quick-Commerce Arena: Pop Market

The on-demand grocery sector in Europe is experiencing rapid growth, and a new player has emerged: Pop Market. This Greek startup launched recently in Athens, offering grocery delivery through a dedicated application and promising delivery within 15 minutes.

Securing Seed Funding for Expansion

Pop Market has successfully secured $3.5 million in seed funding, a sum the company claims is the largest seed raise in the country to date. The investment round was spearheaded by Global Founders Capital and 468 Capital.

This capital injection will be utilized to advance Pop Market’s vertically integrated, dark store-based model within Greece, a market where online grocery shopping is still in its early stages.

Untapped Potential in the Greek Grocery Market

According to Pop Market, the Greek grocery retail market was valued at €11.3 billion in 2020. However, current online grocery sales represent a small fraction of this total – less than 2%, or approximately €163.3 million.

This disparity indicates a significant gap between consumer expectations and the capabilities of existing grocery solutions, often characterized by lengthy delivery times, inflated prices, and inaccuracies in order fulfillment.

Focus on a Superior Customer Experience

Pop Market aims to bridge this gap by providing a streamlined grocery service to Greek consumers, facilitated by a network of strategically located dark stores within the city center. The company also expresses ambitions for international expansion.

However, competition in other European markets is fierce, with numerous well-established and well-funded rivals already present.

Navigating a Competitive Landscape

Within Greece, Pop Market will compete with Delivery Hero-owned efood, as well as Finland’s Wolt. Notably, Delivery Hero has also invested in Gorillas, a Berlin-based dark store operator.

Pop Market co-founder Nick Telecki emphasizes a key differentiator: “While efood and Wolt offer groceries alongside restaurant delivery, their primary focus remains on food service. This impacts customer perception.”

A Dedicated Quick-Commerce Platform

“Pop Market is uniquely positioned as a 100% dedicated ‘Quick-Commerce’ platform for groceries, convenience items, and retail products. This singular focus allows us to deliver an unmatched customer experience and establish strong brand recognition,” Telecki asserts.

He points to the success of Gorillas and Flink in Germany, despite the presence of larger players like Takeaway (Lieferando) and Wolt, as evidence of this potential.

Greece as a Prime Opportunity

Telecki believes that the Greek on-demand grocery market is underserved compared to more competitive markets in Western Europe, making it an ideal initial focus for Pop Market.

Founder and CEO Takis Malavetas adds, “The low online grocery penetration rate of only 2% presents a substantial opportunity. The Greek delivery market is already relatively mature, but grocery shopping lags behind in terms of online adoption.”

Shifting Consumer Habits

Malavetas notes a significant shift in consumer behavior, with customers moving away from large, weekly supermarket trips towards more frequent, smaller purchases. “Our aim is to cater to these daily and occasional needs, which are currently underserved by existing solutions.”

Experienced Leadership

The Pop Market co-founders bring relevant experience to the venture. Malavetas was previously involved in the establishment of Home Run and Convibo in the U.K., while Telecki recently served on Delivery Hero’s global strategy team.

Future Prospects and Strategic Goals

The founders acknowledge the possibility of a future acquisition by a larger company, such as Telecki’s former employer, but remain focused on building a robust consumer business with high customer retention rates.

The seed funding will be allocated to expanding Pop Market’s operations across Greece, including the development of its dark store network (currently four locations), strengthening the supply chain, and growing the team.