Ukrainian vegetable delivery service OVO plans to take the lead in the market
Ukrainian service OVO, which provides vegetable delivery services, attracted $150,000 in the last round. TA Ventures and ICLUB acted as investors in the startup.
OVO plans to use the proceeds to scale the business and further develop the service. According to the startup’s management, the main goal for this year is to take a leading position in the segment of fresh fruit and vegetable delivery. In late March, there will be another round of financing; the funds will be used to open five “dark stores” in Kyiv.
The founders of the startup are Roman Melkumov and Stepan Ziniakov, the service was launched during extremely difficult times – during the quarantine of 2020 and for some time existed at the expense of businessmen’s capital. Initially, the delivery service was called Kyiv Vegetables. In the summer of that year, the startup received investment from Fedoriv Group, which helped not only financially, but also in developing a new brand and advertising campaign. That’s when the name OVO appeared.
The example of the startup demonstrates that a business can be profitable even in difficult times, if the concept is properly thought through and the market is right.
The founders of OVO are inspired to further develop their product by the experience of other similar companies, including American Instacart. Recently, this grocery delivery service was ranked second among the most expensive startups in the United States. It was valued at $39 billion. SpaceX, with a capitalization of $74 billion, took the lead. As a result of the last round, Instacart managed to raise $256 million, last year’s investment in the business amounted to $200 million.
The U.S. delivery service has a presence in the U.S. and Canadian markets. It employs 300,000 couriers who work in 5,500 cities. A major leap forward for the service was the pandemic, when demand for food delivery soared to record levels. In addition, Instacart became an outlet for many people who had lost their main job and were able to get a job as couriers.
D1 Capital Partners, Andreessen Horowitz and others acted as investors in the startup. The company plans to have a public offering on the New York Stock Exchange in the near future.
Grocery delivery services achieved unprecedented popularity during the pandemic, when people sat on self-isolation and reduced contact with the outside world. The demand for these services has grown, and with it the promise of this market. In the first six months of 2020 alone, investment in the FoodTech segment increased by 15.4%. During this period, 331 deals were concluded for a total of $8.6 billion.