Jokr

JOKR was a rapid grocery delivery startup founded in 2021 that promised 15-minute delivery of groceries and essentials.³¹⁰¹¹ The company raised $480 million in equity and debt and achieved unicorn status with a $1.2 billion valuation in December 2021.¹⁰¹¹ JOKR shut down its U.S. operations in June 2022 and later exited several Latin American markets, focusing on Brazil.^1351014

Timeline

Money raised

JOKR raised a $20 million seed round in April 2021, led by HV Capital and Tiger Global.¹¹ In July 2021, JOKR raised a $170 million Series A round led by Balderton Capital and GGV Capital.¹¹ JOKR raised a $260 million Series B round in December 2021 at a $1.2 billion post-money valuation, led by G Squared.⁵¹⁰¹¹ In February 2023, JOKR raised a $50 million Series C round at a $1.3 billion post-money valuation, led by G Squared with participation from GGV Capital, Tiger Global Management, and HV Capital.¹⁰ JOKR raised a $50 million Series D round in September 2023 at an $800 million post-money valuation, led by Activant Capital, Convivialite Ventures, Lombard Odier, and Tiger Global.¹¹¹⁴ In total, JOKR raised $480 million in equity and debt since being founded in 2021.¹⁰

Investors named in the sources: Tiger Global¹⁰¹¹, GGV Capital¹⁰¹¹, HV Capital¹⁰¹¹, G Squared¹⁰¹¹, Balderton Capital¹¹, Convivialite Ventures¹¹¹⁴, Activant Capital¹¹, Lombard Odier¹¹¹⁴, Greycroft¹¹¹⁴, MONASHEES¹¹¹⁴.

What happened

JOKR was founded in 2021 by Ralf Wenzel and a team from foodpanda and Delivery Hero.¹¹ The company launched operations in March 2021, offering 15-minute delivery of groceries and essentials.¹¹ JOKR quickly expanded to cities in the United States and Latin America, including New York City, Boston, Bogotá, Mexico City, and São Paulo.³¹¹ The company used a network of micro-fulfillment centers, also known as dark stores, to enable rapid delivery.³⁸ JOKR hired drivers outright, unlike some competitors that used independent contractors.⁸

In the first half of 2021, JOKR took in $1.7 million in revenue but suffered $13.6 million in losses, according to data reviewed by The Information.³ The Information reported that JOKR was losing up to $159 per order in the U.S.⁸ JOKR raised a $20 million seed round in April 2021, led by HV Capital and Tiger Global.¹¹ In July 2021, JOKR raised a $170 million Series A round led by Balderton Capital and GGV Capital.¹¹ JOKR raised a $260 million Series B round in December 2021 at a $1.2 billion post-money valuation, achieving unicorn status just eight months after launch.⁵¹⁰¹¹

In April 2022, JOKR shut down its operations in Europe.³ The company said the last day of delivery in New York City and Boston would be June 19, 2022.¹ JOKR offered customers a 50% discount on food items and allowed pick-up orders as it cleared inventory.¹ The U.S. business accounted for about 5% of JOKR's total business at the time of exit.⁸¹⁴ JOKR continued to operate in Latin American countries including Brazil, Mexico, Peru, Chile, and Colombia.⁵¹⁰

In November 2022, JOKR ceased operations in Chile.⁵ In January 2023, JOKR announced it would cease operations in Colombia from January 27, 2023.⁵ JOKR faced strong competition in Colombia from Rappi, Cornershop, and Uber's Merqueo.⁵ In February 2023, JOKR raised a $50 million Series C round at a $1.3 billion post-money valuation, led by G Squared.¹⁰ CEO Ralf Wenzel said the company was still losing money, but losses had narrowed to single-digit millions of dollars each month.¹⁰

JOKR hit gross-profit status in April 2022, but was affected by the challenging economic environment.¹⁰ The company decided to focus on Brazil, which accounted for 50% of its business.¹⁰ Wenzel said JOKR was gross margin positive in Brazil and expected full profitability by the first quarter of 2024.¹⁰ In September 2023, JOKR raised a $50 million Series D round at an $800 million post-money valuation, a down round from the previous $1.3 billion valuation.¹¹¹⁴ The Series D round was led by Activant Capital, Convivialite Ventures, Lombard Odier, and Tiger Global.¹¹¹⁴

JOKR reported over 25% gross profit margins with no subsidized grocery orders and month-over-month growth.¹¹ The company's advertising program on the DAKI platform contributed 10% to overall revenue.¹¹ JOKR continued to operate in Brazil, Mexico, and Peru, but was discussing strategic options for Mexico and Peru to focus on Brazil.¹⁰ The company's valuation dropped from $1.3 billion in February 2023 to $800 million in September 2023.¹¹ CEO Ralf Wenzel noted the 40% valuation reduction reflected market realities.¹¹

JOKR's Series D funding supported expansion in existing Brazilian metropolitan areas and potential re-entry into prior Latin American markets.¹¹ The company aimed for overall profitability and continued to operate as a privately held company.¹¹

Where the founders are now

Ralf Wenzel was the co-founder and CEO of JOKR.¹⁰¹⁴ As of February 2023, Wenzel continued to lead the company and commented on its strategy and financials.¹⁰

Lessons, as others put them

"you start having to offer $20 of free groceries on every order to get new customers."Thomas Eisenmann, professor at Harvard Business School³

"Some of these companies raised too much money and the valuations at which they raised make absolutely no sense."Hendrik Laubscher, analyst at Blue Cape Ventures⁸

"The phase of cheap money is gone."Gary Hawkins, CEO of the Center for Advancing Retail and Technology⁸

Sources

1. Breaking: Fast Grocery Startup JOKR Shutting Down US Operations – The Spoon, thespoon.tech, Jun 15, 20
3. The Speedy Downfall of Rapid Delivery Startups, WIRED, 2022-07-15
4. Reports: Rapid Delivery Provider JOKR Pulls Out of U.S. ..., retailtouchpoints.com, Jun 16, 20
5. Jokr shuts down operations in Colombia 2 months after leaving Chile, LatamList, 2023-01-13
6. Instant delivery firm Jokr leaving US, grocerydive.com, Jun 16, 20
8. Ultrafast grocery firm Jokr pulling out of US, selling assets, FreightWaves, 2022-06-17
10. Grocery deliverer JOKR doubles down on Brazil as it secures $50M on $1.3B valuation | TechCrunch, TechCrunch, 2023-02-03
11. JOKR Valuation, Funding & Investors | Multiples, multiples.vc, Sep 18, 20
14. Jokr Valued at $800 Million Post-Money in Latest Funding Round | PYMNTS.com, PYMNTS.com, 2023-09-25
16. Ultrafast delivery platform Jokr to exit U.S. market, chainstoreage.com, Jun 16, 20

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