How much will Weezy be sold for?
Weezy is the last VC darling looking for a buyer, and put the ARR number on the table in order to lure potential suitors.
How much they can actually get and an overview of the latest from the grocery front.
Weezy, one of the many online grocery startups backed by VC money, currently has an annual revenue run-rate of around $20 million to $25 million, has raised just as much and now is out in the market for being sold.
If they get married at 3-5X revenues, not only the investors can finally sleep because they're out of it, but also can produce a somewhat decent return. That is not an easy 'if'.
Achieving 20 million a year within 18 months of operation is not trivial but the unit economic for getting there is likely highly unprofitable. If the buyer is a larger competitor from outside Europe, the revenue is instant market share, and they will likely look closer at the infrastructure and people, a point they will have to build upon to further grow operations. They will though pay a premium for getting the foot in the Euro door.
If it's from Europe, like Getir, for example, the unit economic for achieving the ARR will constitue further leverage for achieving synergies with existing operation in place. The rationale will be faster and cheaper expansion, with a bigger team integration question mark - different teams means different practices and DNA, and joining them is not always smooth or work out at all.
Fwiw, Deliveroo listed at 6X revenues earlier this year, and Dija, which was sold this summer in an unusually rapid exit, had raised about the same amount of money as Weezy did, but were shy to disclose any of their numbers - safe to assume they were not as good as Weezy's 20M ARR, and it's likely that investors got their money back and some change. 'We didn't lose money' is not a bad achievement, considering.
In other related news, Picnic raised 600 million, Wolt is opening dark stores like crazy, Sweden funded two grocery startups this summer, the Russians launched one in Portugal, Glovo bought two small competitors from the Iberics, Cajoo strategically found a way outwith Carrefour (better than a firesale, huh?), Gorillas is going through growing pains.
Speaking of which, this month I have seen two startups with an opening slide 'Online grocery shopping is broken.' There's hope.
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Euro Intel
Data-based intel from the European startup ecosystem written professionally in an easy to understand format - tactical bits and industry-wide trends, curated deals, active investors and relevant early stage transactions.
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