Zapp Secures Funding from Lightspeed and Atomico

Zapp Secures New Funding in Competitive On-Demand Delivery Market

Zapp, a startup competing in the rapidly growing on-demand delivery sector in London and other areas, has reportedly obtained a new round of investment from prominent venture capital firms, as revealed by TechCrunch.

Series A Investment Details

Multiple sources indicate that Lightspeed, based in Silicon Valley, and Atomico, a European firm established by Skype’s founder Niklas Zennström, participated in Zapp’s unannounced Series A funding round. It’s been confirmed that Zapp has collectively raised approximately $100 million, encompassing both this Series A and a prior seed funding stage.

Investor Group

Beyond Lightspeed and Atomico, Zapp’s investor base includes 468 Capital, Burda, and several angel investors. These include Mato Peric, Christopher North – previously the CEO of Amazon UK – and Stefan Smalla, who led Westwing as CEO.

One source suggests this Series A represents the first deal led by Sasha Astafyeva, a consumer-focused partner, since her arrival at Atomico in London.

Zapp's Official Statement

Responding to inquiries regarding the Series A and its investors, Zapp released a statement to TechCrunch. The company emphasized its dedication to customer satisfaction and its plans to expand Zapp’s availability to a wider customer base in London and beyond this year. They generally refrain from commenting on their financial structure.

Founding and Leadership

Zapp was founded last summer by Joe Falter, a founding member of Jumia who oversaw its on-demand services until its IPO, and Navid Hadzaad, formerly a product leader at Amazon’s headquarters in Seattle. Hadzaad previously founded GoButler and contributed to several ventures at Rocket Internet.

The leadership team also boasts experience from companies like Deliveroo, Just Eat, Domino’s, and Tesco.

Operational Model: Dark Stores

Zapp utilizes a vertical or “dark store” model, establishing its own micro-fulfillment centers. Currently, these centers are located in several London neighborhoods, including Kensington, Chelsea, Fulham, Notting Hill, Hammersmith, Shepherd’s Bush, Shoreditch, Islington, and Angel.

Employment and Sustainability

Unlike companies such as Deliveroo that rely on the gig economy, Zapp directly employs its delivery riders. Furthermore, the company prioritizes environmental responsibility by operating a fully electric delivery fleet.

Focus on Convenience

Zapp appears to be concentrating on convenience items, similar to goPuff in the U.S., rather than competing directly with traditional grocery stores. This strategy targets spontaneous purchases.

While some overlap exists, this approach differentiates Zapp from many other dark store competitors.

Competitive Landscape

London’s dark store market is highly competitive, with numerous operators including Getir, Gorillas, Jiffy, Dija, and Weezy. These companies are also actively raising capital and, in some cases, employing aggressive discounting strategies to gain market share.

The rapid expansion and investment in this sector indicate an accelerating “land grab” among these players.