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Zoom Food Group Ltd

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Zoom 1hr is a last mile delivery service that delivers food, convenience & retail goods within 1 hour

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Funded 8 Jun 2021
£200,001 target
£595,084 from 0 investors
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Business overview

Location Shrewsbury, United Kingdom
Social media
Website www.zoom1hr.co.uk/
Sectors Food & Beverage Mixed Digital/Non-Digital B2C
Company number 09553671
Incorporation date 21 Apr 2015
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Investment summary

Type Equity
Valuation (pre-money) £9.3M
Equity offered 2.11%
Tax relief

EIS

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Business highlights

  • Delivered 280k+ orders with 2020/2021 revenues of £2.5m+
  • 70,000 app downloads
  • Partnership secured with Co-op to be Last Mile Delivery partner
  • Designed to be the UK’s hyperlocal, last mile delivery service
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Key features

  • Secondary Market
  • Nominee investment min. £13.95 +
  • Direct investment min. £20,000.00 +

Idea

Introduction

Zoom 1hr is a hyperlocal last mile delivery service delivering food, convenience & retail goods within 1 hour. Currently operating in the West Midlands & Wales, and having experienced rapid growth throughout 2020, we have big plans for a national rollout in 2021. We feel we are perfectly poised to expand across the UK’s underserved rural towns & cities and shake up the on-demand delivery industry.

Founded in 2017 by Kevin Williams and Dave Hamlet we have experienced organic growth at every stage of our journey. Over the last 3 years we’ve empowered everyone from independent high street retailers & restaurants to national chains to offer sub-1 hour delivery to customers in the UK’s small & rural towns. We now feel the time is right to raise investment and supercharge our growth!

With the Online Food Delivery market projected to reach over £5bn in 2021 & grow at an annual rate (CAGR) of 5.6% we are ideally situated to take advantage of a booming market.

Substantial accomplishments to date

Since inception we have established a number of impressive metrics that show we are a high growth business employing a successful & scalable business model.

Currently operating in the local areas around Wales & bordering English counties we have recorded 70k app downloads. The app allows users to seamlessly order products ranging from food & groceries to convenience & retail products from all of our 357 listed stores.

Since going live we have processed over 280k orders through our platform at an average order size of £26.07. This reliable source of income has helped us achieve regular monthly revenue and an annual turnover of £665k in 2019/2020 at an order growth rate of 108%. This annual growth is not standalone as we have recorded organic growth year on year since 2018.

We also boast a substantial list of partners that contains a mix of local, national & international stores including Subway & KFC. This year's national rollout will see us cover an additional 3.3k stores by the end of the year meaning there is a great opportunity to secure further partnerships, both locally and nationally, in 2021.

In addition to these partnerships we have also secured a contract with Co-Op to be their 3rd national last mile delivery partner, currently servicing 61 stores. This opportunity with Co-Op is just the beginning as the total number of stores available nationwide is 3600, with 60% of these being in rural areas.

Monetisation strategy

We operate a simple, four-fold monetisation strategy for our services. This has
enabled strong revenue growth year on year and provides the business with a
consistent and reliable cash flow.

The first revenue stream is a simple commission structure whereby we take a
commission on every order placed on the app. The commission taken is a set
percentage of the order value and is charged in real time once the order is placed.
The second area of revenue generation is a straightforward delivery
fee whereby we take a fee on every order that we deliver.

The third stream comes from our drivers. The drivers rent our branded cars for a set
fee per delivery. This gives the business and our drivers flexibility, and provides
additional marketing in the towns and cities in which we operate.

The fourth revenue line is based on a set price per delivery. This is charged for any
last mile delivery and is set prior to the delivery being made.

Use of proceeds

We are raising funds to invest throughout the business. Below outlines each area in further detail:

New Area Mobilisation

● Expand the size of our fleet for our 2021 rollout
● Purchase extra delivery equipment and driver workwear and PPE
● Increase Marketing budget to expedite customer acquisition and order growth

Product & Website Development

● Increase investment in the development of our product and tech, and bring relevant teams and IP in-house
● Improve our payment management system in order to empower store owners to manage their cash flow
● Develop integration to store catalogues, enabling real time product updates from e-commerce sites and high street store deliveries
● Improved store and driver onboarding process

Key hires and team expansion

● Hire a world class team across marketing, product, tech, operations and finance (important key members have already been identified)
● Expand the Sales team to grow store onboarding

Key Information

Outstanding debt

Please note the business has outstanding debt obligations. A full breakdown can be found in the documents section. The document is titled 'Debt Obligations.'

Please note funds raised as part of this raise will not be used to repay debt.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Zoom Food Group Ltd has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 29 April 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £9,300,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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