We got an exclusive look at the pitch deck food delivery startup Avo used to bag $45 million from investors like Insight Partners
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- Delivery startup Avo just raised a $45 million Series B, bringing its total funding to $80 million.
- The round was led by Insight Partners and also included JLL Spark and Kleiner Perkins.
- Avo inks deals with employers and property managers to deliver goods to dozens of customers at once.
The number of startups delivering food and other goods to consumers has ballooned during the COVID-19 pandemic.
One company, Avo, just raised a fresh round thanks to its unique market approach. Instead of spending money on Facebook ads to win over individual customers, Avo pitches its delivery services as a perk that employers and property managers can offer to their employees and residents.
Once those clients open their doors, Avo has access to an entire company or an entire apartment building. Customers can order as little as one item, and there are no delivery fees.
CEO Dekel Valtzer told Insider that strategy both saves money on customer acquisition and simplifies delivery routes. The company’s full-time delivery drivers can drop off dozens of orders at once instead of making one stop for each order like shoppers for Instacart would.
“It’s dramatically more efficient,” Valtzer told Insider. “We go once a day to every location and serve everyone.”
Avo also stocks many of its fastest-moving products, such as Coca-Cola and baby diapers, at its own warehouses directly from suppliers. But it also offers some items, such as kitchen cutlery and local baked goods, through partnerships with retailers.
The delivery upstart raised a $45 million Series B round, it announced on Wednesday. The round was led by Insight Partners and included funding from Kleiner Perkins and JLL Spark, both of which had previously invested in the company. That brings total funding raised by the company to $80 million since its founding in 2017.
Valtzer said the new $45 million will go toward adding services, such as apartment cleaning, to Avo’s offerings. While many startups are focusing on delivering a narrow list of groceries to consumers in 15 minutes or less, Valtzer said Avo is betting that consumers will stick with slower services that offer a much wider mix of products and services.
“Customers need much more than just this smaller assortment,” he said. “It’s going to be very, very difficult to make money, for us and every company,” on just groceries alone, he added.
The company also plans to expand to 10 new cities over the next 12 months. It currently operates in Israel, where Avo got its start, as well as New York, New Jersey, Chicago, and Houston.
Check out the pitch deck Avo used for its latest funding round below: