A Resilient Latin American Market
Despite the ups and downs of the online grocery delivery industry over the past few years, JOKR has found its niche and is thriving in what seems to be a resilient Latin American market. The company, which does business in Brazil as DAKI, announced that it secured approximately $50 million in Series D financing at a post-money valuation of $800 million.
A Decrease in Valuation
This announcement comes after JOKR’s previous Series C funding round, where the company raised $50 million and had a post-money valuation of $1.3 billion. The decrease in valuation from $1.3 billion to $800 million may seem significant, but according to Ralf Wenzel, founder and CEO of JOKR, it is "appropriate and reflects market conditions." In fact, Wenzel went on to explain that the new valuation was validated by a new investor and strategic partner.
Convivialité Ventures Leads the Round
Convivialité Ventures, the investment arm of wine and spirits giant Pernod Ricard, led the Series D round. This was joined by Lombard Odier, a new investor, as well as existing investors such as G Squared, GGV, Balderton Capital, Monashees, Greycroft, Tiger Global Management, and JOKR’s founders.
Strategic Interest
Wenzel revealed that there was strategic interest in JOKR coming from different angles, most notably retail incumbents and consumer packaged goods companies. "That combination of validation makes us believe that we are now in a framework and bandwidth that most likely represents the strength of our financial performance, relative to an obviously adjusted overall market environment which has come down for the whole sector," Wenzel said.
Growth after Decline
JOKR’s growth can be attributed to its focus on the Latin American market. The company’s model of offering quick grocery delivery has resonated well with customers in this region. "We have been able to adapt our business model to meet the needs of our customers, and that is what has allowed us to grow and succeed," Wenzel explained.
A Flexible Approach
With more capital coming into the company, JOKR can now consider a more flexible approach to expansion. This could include exploring new markets, acquiring other companies, or even going public. "Becoming a public company is another avenue that could be very interesting," Wenzel said.
Can the Quick Grocery Delivery Model Only Work in Emerging Markets?
While JOKR has been successful in Latin America, there are questions about whether its model can scale to more mature markets. Wenzel acknowledged that this was a possibility but expressed confidence in the company’s ability to adapt and innovate.
Key Takeaways
- JOKR secured $50 million in Series D funding at a post-money valuation of $800 million.
- The decrease in valuation from $1.3 billion is attributed to market conditions.
- Convivialité Ventures led the round, joined by new investor Lombard Odier and existing investors.
- JOKR’s growth can be attributed to its focus on the Latin American market.
Future Directions
With more capital coming into the company, JOKR has several options for expansion. These include:
- Exploring new markets: JOKR could consider expanding into other emerging markets or even mature markets.
- Acquiring other companies: The company may look to acquire other businesses in the online grocery delivery space.
- Going public: JOKR has expressed interest in becoming a publicly traded company.
These options will allow JOKR to continue growing and innovating, solidifying its position as a leader in the online grocery delivery industry.
