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Delivery Club gets another $8 million

0 20 December 2013

Russian project Delivery Club, which offers food delivery services in 18 major Russian cities and 22 satellite towns around Moscow, has raised $8 million from Phenomen Ventures, AddVenture and Guard Capital

When it was founded in 2009 Delivery Club brought together more than 2,000 independent delivery services. It initially raised $400,000 from Russian business angels, before securing $1 million in a round led by AddVenture in 2011, and a further $4 million in October 2012 from AddVenture, Guard Capital and the project’s founders. 

The project is particularly oriented towards mobile platforms and the vast majority of orders are placed using the company’s iOS, Android and Smart TV apps, which have been downloaded more than 1 million times. 

The company broke even within two years after it was launched, and its monthly revenue now exceeds $11 million, 300% more than last year. It earns a 10% commission on all orders placed. 

The funds will be used to improve the project’s IT and to further its expansion into smaller Russian cities. 

Sergei Karpov, Managing Partner of AddVenture explained that

“the Russian food delivery market is worth $1.5 million, two thirds of which is in Moscow. New Russian companies and subsidiaries of big Western corporations trying to break in reckon that this is one of the most promising, but complicated, markets in Europe.”

AddVenture also recently invested in food delivery service Chefmarket, while Phenomen Ventures’ portfolio already includes German projects Delivery Hero and FoodPanda. 

Top image via Shutterstock 

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