Delivery Club, a Moscow-based online food delivery service aggregator, has completed its fourth round of financing with $8 million secured from Phenomen Ventures as well as from existing investors AddVenture and Guard Capital.
The startup had initially raised $400,000 in 2009, then $1 million from AddVenture and prominent Russian businessmen in 2011, then again $4 million in a round led by AddVenture in October 2012.
Delivery Club claims to combine the offers of 2,000 delivery services, from which it collects a 10% commission fee on each order. The site’s monthly turnover exceeds 360 million rubles ($11 million), up 300% from last year, East-West Digital News learned from a source close to the company. Average order value amounts to 1,350 rubles (approximately $40).
Delivery Club, which covers already 18 large cities in Russia and 22 cities in the Moscow region, intends to continue its expansion throughout Russian regions. The investment will also be used to enhance the company’s IT platform.
Among Delivery Club’s competitors is Foodik.ru, a site that merged with Germany’s Delivery Hero last year.
In an exchange with Vedomosti, Dmitry Falkovich, the founder of Phenomen Ventures, has estimated Russia’s food delivery market at least $1 billion with a potential several fold growth in the next couple of years.
However, Vedomosti also reports a case of failure – that of Izrestorana.ru, a site launched by Turkey’s Yemeksepeti.com that ceased activities in 2012.
Delivery Club’s investors are especially fond of food delivery startups of various kinds. Phenomen also has stakes in Delivery Hero and Foodpanda, while AddVenture just announced an investment in Chefmarket.ru.
This story originally appeared on EWDN.