Grocemania

Idea

Introduction

With a spread of COVID-19 and lockdown announced worldwide, grocery delivery services across the world have grown in popularity and became essential for millions of people. We have been delivering groceries from your local retailers for the past three years and this year, our team has been at the forefront of the pandemic delivering everyday essentials to thousands of people across London, Brighton, and Bristol.

Grocemania is an on-demand delivery platform, which allows customers to find & shop from local grocery stores and get deliveries in minutes for only £2.50! And we do it at absolutely no cost for retailers!

Now we have completed the development of our own bespoke technology with a new data reporting tool for big FMCG brands. With almost 1000% growth in sales and new big partnerships with Unilever and PepsiCo, we are launching this campaign to raise marketing capital to fuel the expansion and scale the service nationwide, while unlocking a new revenue stream for the business!
Link to new site below:
new.grocemania.co.uk

Substantial accomplishments to date

- Over 115+ local retailers across London, Brighton, and Bristol including brands like Nisa Retail, Londis, Budgens, and more!

- Helped local retailers to generate £200,000 in sales through our platform since Jan 2020

- Reached 42% Customer Retention level

- Top clients "LTV" reached over 100+ orders and more than £15,000 spent with us!

- Achieved excellent 4.5/5 customer rating through pandemic

- Developed our own bespoke technology based on Magento 2.3 with all trademarks and IP's under our name

- Developed a new "Data Reporting" module, which allows brands to subscribe and get detailed data analytics and sales insights about their products within the independent sector and filter it by area, time, demographics, and much more!

- Grown the team to 8 people

- Partnered with Unilever to support "DTC" (Direct To Customer) sales and Data Reporting.

- Partnered with PepsiCo and launched a number of sponsored marketing initiatives to maximize PepsiCo, Walkers, and Doritos sales during the Group Stage 2020, and provide valuable data regarding their product performance within the independent retail sector.

- Now in discussions with Coca-Cola, Pernod Ricard, Budweiser Brewing Group, and Kellogs to join the family as well

- Listed in "Top 100 UK Startups 2020"

- Listed in the top "10 European Startups" by Startups EU

- Featured in prestigious editions such as Timeout, The Grocer, Food Navigator, eMarketer, and UK Technews.

And it is just the beginning of our journey!

Monetisation strategy

Everything is pretty simple, we add 'Product Mark-Up' of 20% to 30% for each product listed on our platform and charge a fixed delivery fee of £2.50 per order. With the average order being £56.14, we generate around £13.78 gross profit After paying a fee to the courier, the average order generates us £5.60 revenue per order.

We have stayed cash positive in the past 6 months even though we have undertaken significant costs due to the rapid expansion caused by the COVID outbreak.

We also plan to monetize the "data module" and sell data reports and sales insights to big FMCG brands on a subscription basis in order to secure the leading position in the tech grocery sector.

Due to the lack of digitalization, big brands know how much they sell to the retailers, but know nothing regarding the product performance, i.e. what time or with which products it was sold the best. The subscription prices will start at £2000 per month and we can already see traction from brands for such tools.

Use of proceeds

We have state of the art technology, established processes, loyal clientele and partners, constant growth additionally disrupted by the current market stage, over 6,000+ couriers ready to deliver, and a number of big partnerships to start scaling our service nationwide! Now we are aiming at activating Birmingham, Manchester, Liverpool, Leeds, and Oxford within the first six months of 2021.

The major purpose of this round is to secure a marketing budget to support the expansion, attract new users, therefore generate more data for the new reporting product, and meet the VC criteria to go for Round A.

The money raised will be used to:
- Invest heavily in marketing and grow our monthly budget by 10 times (from £500 per month to £5000 per month)
- Test our data module with current partnerships and create useful case-studies to further secure commercial contracts/subscriptions
- Invest more in local and product SEO and therefore lower the average Cost per Acquisition