Investment in Buymie

Investment in Buymie

Irish Grocery delivery start-up Buymie has, today, announced closure of its latest funding round of €2.2m together with the signing of a multi-year partnership agreement with Lidl Ireland.

Buymie provides consumers with access to multiple large retailers and in January 2019 announced its first direct partnership with Lidl Ireland, providing a personalised online grocery delivery service for the retailer.

The Buymie service is currently available to over 490,000 households throughout all of Dublin, as well as areas such as Maynooth, Celbridge, Leixlip, Bray and Greystones.

Commenting on the new extension deal, Alan Stewart, Head of eCommerce at Lidl Ireland said: “Lidl welcomes the extension of our successful partnership with Buymie. The ability to offer our increasing customer base more flexibility in how they shop has been warmly received by thousands of customers in Dublin and the surrounding areas. We’ve seen the number of monthly active customers using the service growing by as much as 39%+ month on month. We are looking forward to exploring options for further expansion over the coming years.”

Devan Hughes, CEO & Co-Founder of Buymie added: “We’re thrilled to be announcing this latest funding round as well as a further strengthening of our partnership with Lidl Ireland.  The timing couldn’t be better given the current challenges faced by consumers in Ireland and worldwide with COVID-19.  I feel that it is down to emerging indigenous businesses like ours to play a key role in shaping the Irish economy to prepare it for the way the world will work and how people will shop post COVID.

The growth in market share experienced by both organisations in 2019 alone has been staggering and the team and I are excited to be in a position to now expand our capacity and provide more access to consumers in this time of need.

Having been in the Irish market now for over 3 years, Buymie is in a position to take a longer term view of the Irish market and to expand internationally.  The advanced optimisation technology we’ve developed has leap frogged pre-existing models, and we have now created a hyper-growth, capital efficient channel for large retailers who wish to partner with us to service their local communities.”

With the latest COVID-19 crisis, the online grocery market has come under significant pressure to increase capacity ,with large grocers acknowledging that their distribution models do not allow for meaningful scaling to meet consumer demand.

 

The unique approach of Buymie’s model is that it does not require vans and warehouses to increase its capacity and can scale its service in weeks rather than months.  This is achieved by using state of the art platform technology and connectivity to connect consumers with a network of hundreds of independent personal shoppers who can pick and deliver items directly from retail stores all around the city.

Lidl customers using the Buymie app can choose from Lidl’s full range of permanently listed products* available in store.  Delivery options include the speedy one hour service, as well as 1 hour delivery slots for up to a week in advance.  With the current demand for online services at unprecedented levels, Buymie has seen a 300% surge in downloads and in recent weeks many of its slots are being booked 6 to 7 days in advance, with Buymie releasing new slots every day.

Following this latest funding round and a successful first year of partnership in Dublin, Buymie and Lidl have now set their sights on rapidly expanding their partnership through a more strategic multi-year expansion deal, with Buymie forecasted to add significantly more capacity to the Irish market.

Buymie received its first investment from Enterprise Ireland in 2016 when CEO & Co-founder Devan Hughes was the company’s first and only grocery delivery person.

Since then the company has gone on to raise over €5m from investors.  This latest round sees €2.2m of fresh funding for the fast growing business and was led by well-known venture capital firm Act Venture Capital with participation from Sure Valley Ventures and significant support from long term existing investor, Haatch Ventures.  Other participating investors include Eamonn Quinn (Buymie’s Chairman), BVP Investments, Enterprise Ireland and a collection of strategic angel investors through HBAN’s Bloom Syndicate.

 

Customers who are interested in getting their Lidl groceries delivered through Buymie can download the Buymie app for either iOS or Android devices.  With a simple pay as you go delivery fee model on orders, Buymie also recently announced the launch of its new membership offering called Buymie Plus, which provides users UNLIMITED free deliveries on all orders of €40 and above, for just €11.99 per month or €99 per year.

Ends

*  non-food weekly specials and promotional food themes which are available for a limited period in stores are not available on Buymie