Flink: Grocery Delivery Startup Raised US$150 Million in Funding

Grocery Delivery Startup Flink: Key Insights

• Expansion: Flink secures $150M in funding to focus on Germany and the Netherlands.

• Strategic partnership: Flink works with Just Eat Takeaway to fuel growth.

• Growth: Flink targets $600M revenue and profitability by 2025.

Flink is a well-known startup in Germany and was one of the first grocery delivery (or quick commerce) companies to serve consumers in cities like Berlin, Hamburg, and Munich. It reached unicorn status in 2021, less than a year after its founding, driven by the demand for grocery delivery during the pandemic. It is still active and continues to grow.

Flink Raises US$150M to Focus on Core Markets

According to TechCrunch, Flink has secured US$150 million in new funding to concentrate its efforts on Germany and the Netherlands. The funding includes US$115 million in equity and US$35 million in debt, backed by investors such as BOND, Mubadala, Northzone, and REWE, along with two unnamed parties.

From Expansion to Stability

Flink, once a top player in quick commerce, has seen its valuation drop significantly. The company was previously valued at nearly US$5 billion in 2022, but recent rounds have brought it down to just under US$1 billion. This new injection of capital comes as Flink exits less profitable markets (like France) and doubles down on its strongest regions.

In line with this strategy, the company has established a “preferred partnership” with Just Eat Takeaway, the Dutch delivery giant, although it remains unclear if the latter is among the latest investors.

Flink: Market Challenges and Restructuring

Flink's success was fueled by the COVID-19 pandemic (like other instant delivery services). People could not or would not go to supermarkets for delivery, and Flink was there to fulfill that need. So investors poured billions into this space, leading to rapid growth. However, the market has since cooled, with several players either merging or exiting. For instance, Flink acquired the struggling French startup Cajoo in 2022 but has since withdrawn from France.

Facts About Flink

Flink is still a big player in the quick commerce world.

• Flink operates 146 hubs in 80 cities across Germany and the Netherlands.

• Plans to open 30 more locations by 2025.

• Employs 8,900 people.

• Expects US$600 million in revenue by 2024 (a 20% increase from 2023).

• Claims to have reached EBITDA break-even in both markets.

• Aims for full profitability by Q2 2025.

Focused Growth Ahead

Flink's current strategy reflects a broader industry trend: focusing on core markets to improve operational efficiency and profitability. As the company builds on its existing base, future expansion will depend on the success of its operations in Germany and the Netherlands.