Online grocery delivery company JOKR, also known as DAKI in Brazil, has announced its successful completion of a Series D funding round, raising approximately $50 million. This latest financing brings the company’s total valuation to $800 million. Despite a slight decrease in post-money valuation compared to its previous round, JOKR’s founder and CEO, Ralf Wenzel, affirms that the current market conditions warrant this adjustment. The funding round was led by Convivialité Ventures, the investment arm of Pernod Ricard, with Lombard Odier joining as a new investor.
Key Takeaway
JOKR secures $50 million in Series D funding, reaffirming its strong foothold in the Brazilian market and its commitment to profitability. With a robust product offering, an advertising business showing significant growth, and a valuation of $800 million, JOKR is well-positioned to thrive in the competitive online grocery delivery sector.
Solidifying JOKR’s Position in Brazil
JOKR’s investment not only propels the company towards profitability but also consolidates its presence in Brazil’s lucrative yet underserved grocery market. With an anticipated worth of $80 billion by 2026, Brazil holds immense potential for JOKR’s operations. After making strategic decisions, including withdrawing from the US market and streamlining its operations to focus solely on Brazil, JOKR has witnessed notable growth and improved financial performance. The company now experiences month-over-month growth, with a gross profit margin above 25% and no subsidized grocery orders.
Expanding Product Offerings and Advertising Growth
As part of its expansion strategy and to cater to varied customer needs, JOKR has introduced scheduled deliveries in addition to its instant delivery service, enabling customers to choose specific time slots. Moreover, JOKR has significantly expanded its product range, now offering 10,000 different products to its customers. The company’s advertising program has also contributed to its success, allowing brands to advertise and promote products on the DAKI platform. This advertising segment now accounts for 10% of JOKR’s overall revenue, thanks to its ability to provide detailed customer segmentation and superior analytics.
Future Opportunities and Expansion
Apart from focusing on profitability, JOKR’s new capital infusion opens up opportunities for future expansion and could potentially allow the company to re-enter some markets in Latin America it had previously exited. Wenzel acknowledges that the additional funding grants JOKR more flexibility and control over its expansion plans, even considering the possibility of becoming a public company in the future.
JOKR’s successful funding round and its growth in the Brazilian market showcase the resilience and potential of the online grocery delivery sector, particularly in emerging markets. With its strategic focus on Brazil and its commitment to enhancing customer experience and expanding product offerings, JOKR is well-positioned to capitalize on the booming online grocery market in the years to come.
