AddVenture invests in an aggregator of food and products delivery

AddVenture invests in an aggregator of food and products deliveryAddVenture investment fund with the founders and management of an aggregator of food and products delivery services Delivery Club has invested in the development of the company $4M in the second round of funding. The funds will be spent on regional and international expansion.

Delivery Club Company was founded in 2009 with the money of three private investors led by a businessman Levon Hovhannisyan (engaged in the wholesale of food). The project received $400K at start. The service currently works in Moscow and Moscow region, St. Petersburg, Yekaterinburg, Nizhniy Novgorod, and in Novosibirsk. About 70K people visit the site every day and make more than four thousand orders, and the base of active Delivery Club users is over 250K people. Over the last 1.5 years the company increased its turnover by 40 times.

The founder of the company has the controlling stake of Delivery Club which saw its first investment round in September, 2011 led by AddVenture that brought it $1M.

Delivery Club plans to start its service in seven megacities of Russia till 2012, and in 2013 - in the markets of Ukraine and Kazakhstan. The company also considers the possibility to enter some Asian countries, particularly China and Latin America.

According to Delivery Club, the volume of food delivery market of Russia in 2011 amounted to about $1B. The annual number of food delivery orders through the Internet grows by 50%. The main subject of the demand is pizza and sushi. By 2015, the market should double to $2B and become the biggest in Europe.

Average ticket of Delivery Club is 1.5K RUR, the commission of aggregator is 10% of each order. Its clients base includes more than 900 restaurants and shops.