Jiffy Raises $28M to Expand Rapid Grocery Delivery in London

Jiffy Secures $28 Million in Series A Funding

London-based grocery delivery service, Jiffy, founded in April, has successfully raised $28 million in a Series A funding round. This follows an initial £2.6 million seed raise approximately six months prior, bringing the company’s total funding to $35 million.

Rapid Grocery Delivery Network

Jiffy distinguishes itself through a network of dedicated dark stores. This infrastructure allows the company to guarantee delivery of fresh groceries within a remarkably short timeframe of 15 minutes.

Currently, the company operates eight stores throughout London, and intends to utilize the new funding to facilitate expansion.

Customer Base and Market Position

Jiffy reports having acquired around 20,000 customers across its six London delivery zones. The company is operating in a highly competitive market.

The Series A funding round was spearheaded by Heartland, a family-owned investment firm. Flint Capital, a Boston-based international VC fund, also participated, alongside the Family Office of the Bukhman brothers – founders of gaming company Playrix – and existing investors Baring Vostok Capital Partners and LVL1.

Competitive Landscape

The quick-commerce grocery sector in London is intensely competitive. Key players include Gorillas, Weezy, Getir, and Zapp. Additionally, the U.S. unicorn Gopuff has entered the market through acquisitions of U.K. startups Fancy and Dija.

Experienced Leadership Team

Jiffy’s founders possess significant experience in the q-Commerce space. Co-founder and co-CEO Vladimir Kholiaznikov previously served as CEO of Russia’s e-grocery player X5 Food Tech.

Artur Shamalov, also co-CEO, has a background in founding food-related startups in Russia. Both founders also have experience in investment, providing a valuable network for future fundraising efforts.

The team also includes Igor Demishev (CTO), Marat Balatov (platform director), and Oleg Naumov (performance marketing director).

Target Customer and Expansion Plans

Jiffy’s customer base primarily consists of families and middle-aged grocery shoppers. These customers are transitioning from traditional convenience stores and weekly online grocery shops.

According to Kholiaznikov, this trend is expected to accelerate as the service matures.

The Series A funds will be allocated to expanding Jiffy’s presence within London, with potential expansion to other urban areas in the U.K. later this year.

Future Growth Strategy

Jiffy aims to cover London within the M4 corridor by the end of the year. Pilot programs in smaller towns are also being considered.

The company’s “long-term” vision includes expanding to all towns with a population exceeding 100,000.

Furthermore, Jiffy intends to offer its q-commerce technology platform to local players in international markets, exemplified by its partnership with Send in Australia. This approach will complement its core business and benefit shareholders.

Differentiation and Competitive Advantages

Jiffy differentiates itself by prioritizing the speedy delivery of fresh produce. This contrasts with competitors who primarily focus on delivering shelf-stable items like beverages and snacks.

The company also faces competition from established food delivery apps like Deliveroo, JustEat, and Uber Eats, which are expanding into light grocery offerings.

Logistics and Sustainability

Jiffy’s focus on the full weekly grocery shop presents logistical challenges, particularly with the 15-minute delivery promise. However, this approach has the potential to be more sustainable and profitable than solely catering to convenience needs.

Traditional supermarkets, having benefited from increased profits during the pandemic, could invest in their delivery services. However, Jiffy aims to gain an advantage through its commitment to hyperfast delivery, even with a potentially smaller product selection.

Additional Services and Employee Model

In addition to delivery, Jiffy is introducing “Click & Collect” ordering at select London stores, providing customers with more fulfillment options.

The company avoids the complexities associated with gig work by employing its delivery couriers, who operate e-bikes and mopeds.

Q-Commerce Platform Offering

Jiffy offers an innovative q-commerce platform to other businesses. This allows companies to launch their own quick-commerce stores using Jiffy’s established IT infrastructure, as noted by Kholiaznikov.

Investor Confidence

Lise Kaae, CEO of Heartland, stated: “The Jiffy team has managed to impress us with their ambitious plans and effective execution, and we are excited about the journey ahead operating in a highly dynamic and exciting growth market.”

Baring Vostok added: “We strongly believe in the large and untapped potential of the e-groceries market in the UK and the ultra-fast delivery business model developed by Jiffy. The company is led by a very experienced team of founders and the current round would enable Jiffy to further accelerate the growth. We are glad that the fund of Baring Vostok is a part of this exciting story.”

Note: This report has been updated to clarify that the investment from Playrix was made through the Family Office of its founders, the Bukhman brothers. Details regarding Jiffy’s co-founders and their roles have also been added.