The Berlin start-up takes over the French competitor.
(Photo: Flink)
Dusseldorf, Frankfurt The Berlin food delivery service Flink buys the French competitor Cajoo. With the acquisition of the smaller rival, Flink claims to be the market leader in France. At least as important for the company of boss Oliver Merkel: In the course of the deal, the French retail giant Carrefour also joins Flink and becomes the exclusive trading partner. The agreed cooperation is reminiscent of the existing partnership with the German Rewe Group.
The deal shows that Flink is in a good position to start with the upcoming consolidation of the small-scale market. Experts had already predicted an accelerated consolidation of the market. In the difficult market environment, weaker start-ups in this segment are currently finding hardly any investors. There has been a drastic change in mood.
During the corona pandemic, investors were still lining up to invest in the lightning delivery services that are booming worldwide. Due to the phased combination of high infection rates, little or no vaccine availability and long quarantine periods, the model of immediate delivery services for groceries and other supermarket products aroused great interest worldwide.
There are a number of start-ups in the market, including Flink and companies such as Gorillas, Picnic, Knuspr, Getir and Jokr. All of them are expanding strongly and usually post high losses. This is one of the reasons why mergers are now to be expected. In this way costs can be reduced.
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According to company sources, Cajoo changes hands for less than 100 million euros. The number two in the French market has six million customers in Paris and the eight next largest French cities. In the first quarter of this year, the service is said to have processed almost 450,000 orders. However, industry experts expect that not all Cajoo users will switch to the Flink app.
The additional employees and the “dark stores” in the centers of the major cities are likely to be more relevant for Flink. Their strategically favorable location is of great importance for the business model.
Flink’s rating is expected to increase, but things are looking worse for competitors
As soon as an order is received, an employee packs the goods in a bag and a supplier usually picks them up by bicycle. The goal is deliveries within 15 minutes. In France, customers are to be supplied with Flink drivers before the end of June.
Last year, Cajoo had collected 40 million dollars in a first major financing round (Series A). Retail giant Carrefour acquired a minority stake. The investors also include investors Xange, Frst Capital and Headline.
Flink itself had raised $750 million in a funding round in December, resulting in a valuation of almost three billion euros. According to company circles, Carrefour has now entered the company at a significantly higher price, which is not to be communicated.
Flink had a turnover of around 500 million euros in the past twelve months, Cajoo’s revenue figures were not mentioned.
In view of the high losses that the so-called quick commerce companies are writing and the slump in technology stocks on the stock exchanges, some competitors are finding it difficult to raise new funds. According to financial circles, Gorillas, for example, has to be prepared to raise less money than hoped for in the current financing round. An increase in the rating is considered unlikely. In recent years, the ratings have usually increased significantly from round to round.
More: Delivery services market worth billions: Rewe counters Gorillas, Picnic and Knuspr