Tiggy Launches 15-Minute Food Delivery in Canada

Tiggy Secures Seed Funding for Rapid Grocery Delivery in Canada

Tiggy, a newly established grocery delivery startup, has entered the Canadian quick commerce sector. The company announced Friday that it has received $6.35 million in seed funding.

Expanding the Quick Commerce Landscape

This investment will be utilized to establish a network of dark stores, enabling Tiggy to offer grocery deliveries within a remarkably swift 15-minute timeframe.

The Canadian e-commerce market is currently valued at $29 billion. However, the food delivery segment remains relatively underdeveloped.

Company Origins and Market Timing

Founded in July 2021 by Eugene Bisovka and Razmik Sukyasov, Tiggy launched operations around the same time that Instacart began providing food delivery services in Quebec.

This expansion granted the established delivery giant access to all ten Canadian provinces.

Differentiating Factors in a Competitive Market

Numerous individual grocery stores implemented their own delivery options during the pandemic. These joined existing delivery services like Instacart, PC Express, Inabuggy, DoorDash, and Uber Eats.

Tiggy distinguishes itself by promising faster delivery times, without imposing minimum order requirements or additional fees. Bisovka emphasized this as a key differentiator from competitors.

Significant Market Opportunity

“Canada presents a $100 billion market with limited dedicated food delivery providers,” Bisovka stated. “This realization heavily influenced our decision to focus on this region.”

He further explained that while services like DoorDash and Uber Eats offer grocery delivery, they typically involve hour-long wait times and added costs, creating uncertainty regarding the final price.

The Dark Store Advantage

The adoption of a dark store model is another defining characteristic of Tiggy’s strategy. Bisovka noted that this approach is largely absent in the Canadian market.

He anticipates that utilizing dark stores will facilitate hundreds of additional daily orders, averaging between $25 and $30, with a projected contribution margin of 10% to 12%.

Service Launch and Consumer Behavior

Tiggy initiated its service in September, offering a selection of over 1,400 SKUs, encompassing essential pantry items and fresh produce.

The company aims to promote a shift towards on-demand shopping habits, catering to situations where consumers realize they are missing an ingredient while cooking.

Investment Details and Expansion Plans

Heartland spearheaded the seed funding round, with participation from Global Founders Capital, FJ Labs, and Redbox Ventures.

Bisovka plans to utilize the new capital to double the number of available SKUs, broaden Tiggy’s presence in Vancouver with two additional dark stores (bringing the total to six), and launch operations in Toronto with five stores by year-end.

This funding also provides a substantial runway for the company to establish 350 fulfillment centers nationwide by 2024.

Growth and Disruption

While Bisovka refrained from disclosing specific growth metrics beyond the current workforce of 150 employees, Turner Novak, founder of Banana Capital and an early investor, described Tiggy’s growth as “impressive.”

Novak also stated that the company is already challenging established players with a customer base exceeding one million.

Long-Term Sustainability

“Their progress over the past few months has been remarkable,” Novak added. “The dark store model offers a greater opportunity for capital efficiency, although establishing independent fulfillment infrastructure can be challenging.”

He concluded that successful implementation of this model will contribute to the company’s long-term viability.