Jiffy Secures Seed Funding for Rapid Grocery Delivery Service

A new player has entered the rapidly expanding online grocery delivery market: Jiffy, a London-based company aiming to provide customers with fresh groceries and household necessities within approximately 15 minutes. The company has recently obtained £2.6 million in seed funding to facilitate its upcoming launch.

Investment Details

The funding round was led by venture capital firm LVL1 Group, with additional investment from AddVenture, TA Ventures, Vladimir Kholiaznikov, and several angel investors including Oskar Hartmann, Alexander Nevinskiy, and Dominique Locher. This capital injection will be instrumental in Jiffy’s initial expansion plans.

Launch Plans and Expansion

Jiffy intends to utilize these funds to establish its first stores within London, with operations anticipated to begin as early as this month. Initial service areas will encompass Westminster, Waterloo, Lambeth, Battersea, Clapham Town, Shoreditch, Bethnal Green, Hackney, Whitechapel, Stepney Green, and Leytonstone.

Furthermore, the company plans to introduce an additional 20 local fulfillment centers throughout the U.K. later this year. Jiffy is also reportedly initiating another fundraising effort to support its continued growth.

Experienced Leadership

The company’s leadership team possesses significant experience in both online and traditional retail sectors, including former managers from prominent companies such as Sainsbury’s and Deliveroo. This expertise is expected to be a key asset in navigating the competitive landscape.

Addressing a Market Need

“In today’s world, while accessing opportunities like space travel is becoming a reality, obtaining a timely grocery delivery remains a challenge,” states Jiffy founder Artur Shamalov. He highlights the frustrations many U.K. consumers experience with current online grocery shopping options, including limited delivery slots and lengthy wait times.

Shamalov believes that grocery shopping should be as convenient and affordable as visiting a physical store, but with the added benefit of ultrafast delivery. Jiffy aims to provide this seamless experience to its customers.

Service Offering and Product Range

Jiffy envisions its service as a potential replacement for the traditional daily grocery shopping trip. The company will offer a diverse selection of products, including fruits, vegetables, meats, prepared meals, and household essentials sourced from both popular brands and local suppliers.

The product range is projected to “exceed” 2,000 SKUs per store, catering to a wide variety of consumer needs.

Target Audience

Jiffy’s target demographic includes busy parents, professionals, and individuals who value convenience and time savings. The service also aims to serve vulnerable populations who may find it difficult or unsafe to visit supermarkets.

“We want to ensure everyone has access to essential groceries without compromising their safety or facing excessive delays,” explains Shamalov.

The Rise of “Dark Stores”

Jiffy is part of a growing trend of European startups focused on delivering groceries and convenience items within 10-20 minutes. These companies operate hyperlocal, delivery-only fulfillment centers – often referred to as “dark stores” – and employ their own delivery personnel.

This full-stack approach is intended to enhance supply chain efficiency and improve unit economics, although its long-term viability remains to be fully demonstrated.

Competitive Landscape

Shamalov acknowledges the increasing competition within the grocery and convenience dark store market, both in the U.K. and across Europe. However, he emphasizes that the industry is still in its early stages, with all players working to establish the necessary infrastructure for instant grocery delivery.

“We foresee instant grocery delivery becoming an integral part of urban infrastructure, akin to essential services like water pipes and broadband,” he states. “We are collectively building this new infrastructure while competing with traditional grocery distribution channels.”

Key Competitors

The competitive landscape includes companies such as Berlin-based Flink, Gorillas, Weezy, Getir, Dija, and Zapp. Additionally, the U.S. unicorn goPuff is reportedly considering expansion into Europe and has explored potential acquisitions or investments in U.K.-based Fancy.

Capital Requirements and Strategy

The rapid expansion of these services requires substantial financial investment to establish stores and implement customer acquisition campaigns. Some competitors are already aggressively increasing their spending in London.

Despite being a relatively new entrant, Jiffy’s founder, Shamalov, asserts that the company is not underfunded. He emphasizes a strategic approach to capital allocation, prioritizing efficient growth and avoiding overspending on ambitious expansion plans.

Focus on Hyperlocal Expansion

“We believe that a hyperlocal approach is crucial for success in this business model,” says Shamalov. “Our focus is on expanding within a single market rather than pursuing rapid global expansion.”

Jiffy is also experiencing significant investor interest, even while operating in a stealth mode, indicating confidence in the company’s potential. Shamalov anticipates a successful next funding round.

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