Given the frothy state of funding, it feels like there is a giant online supermarket stocked full of grocery-related startups and VCs are just wandering the aisles, filling up their baskets with companies promising to revolutionize the way we get our food.
At the beginning of March, we wrote about a single 12-hour period in which four grocery startups got funding (Instacart, Crisp, Rohlik and Flink). And it seems that VCs were just getting warmed up. Since that day, we’ve seen a number of grocery startups raise money including Stor.AI, Fridge No More, Jiffy, Shelf Engine, Weee!, Gorillas, Getir and GoPuff.
That list has grown once again this week as three more grocery startups have raised rounds of funding:
There are couple things of note from this round of news. First is that European speedy delivery startups remain popular with investors right now, especially London-based ones. Zapp faces competition from the likes of Weezy, Jiffy, Getir and Gorillas.
Second is that these funding rounds are no joke. Nice Tuan’s $750 million haul follows fellow Chinese grocery app Xingsheng Youxuan’s $2 billion funding round in February. In the U.S., goPuff raised $1.5 billion, In Europe Gorillas raised $290 million and Getir raised $300 million (evidently startups starting with the letter “G” are also popular).
How long with this frothiness continue? That’s unclear. Will startups like Weezy or Fridge No More, whose funding is only in the double digit millions feel pressure to raise more to compete? And what about the overall grocery delivery space? The pandemic forced record amounts of grocery e-commerce, but a market correction is predicted for this year bringing those numbers back down to earth. But many of these startups are looking to change the way we grocery shop altogether by turning it into more of an always-on utility. Will people adopt speedy delivery as their new norm?
We don’t have a particular crystal ball for that, but we at The Spoon will chronicle it all as the market unfolds.