Bulgarian grocery e-store eBag closed its first seed round at €650K to further expand on the Bulgarian market, news site Trending Topics announced. The company will use the funds to fully penetrate in the capital of Bulgaria, Sofia, but also to promote its platform in another Bulgarian city that is yet to be revealed. In order to do that, the company will use most of the money to further develop its platform, where most of the operations are taking place, but will also expand the team and their warehouses.
The round was recently closed with the investment made by the Bulgarian entrepreneurs and investors at OU Orbise Corp, Nedelcho Spasov and Stanimir Vassilev, but previously Eleven Ventures (in November 2018) also participated in the round. The first two, Spasov and Vassilev, invested together €440K, whereas the Bulgarian VC, Eleven Ventures, invested €210K. This was the very first seed round initiated by eBag but the company is expecting another one during this year.
Apart from expanding, the startup’s CEO, Ivan Alexandrov plans to lunch IPO – Initial Public Offering, too.
“We are planning another round this year and seriously considering to list eBag publicly”, Alexandrov told Trending Topics.
Founded in 2014 in Sofia, Bulgaria, eBag is an online supermarket. According to the company’s info, the team’s mission is to facilitate the weekly shopping for their users by providing a convenient and affordable solution that will save a lot of time, will put an end of waiting in queues in the supermarkets and save the clients from carrying heavy bags. The online shop offers over 11,000 products and introduces new promotions every week. The company currently makes more than 250 deliveries per day in Sofia and aims to grab a significant share of the household purchases of today’s busy families.
At the very beginning the company was in a partnership with the local chain Fantastico. In that partnership the eBag was in charge for the online platform, the sales and the delivery of the goods, while the later – Fantastico, took care of storage and packaging. But after three and half years in partnership, the eBag management decided to continue on its own. Today the platform is used by around 12K households in Sofia.
According to Trending Topic’s article, the platform is mostly used by young mothers. The most ordered articles at the moment are baby supplies, foods, drinks, and other household products. Besides private costumers, companies are also part of their portfolio. Reportedly, eBag is supplying them with fruits and drinks. At the moment the average purchase on the platform is around €40-€45, but Alexandrov is hoping this to be raised to over €50 in the next few months. With a turnover of €3M made in 2018, this e-shop is expecting to double the income this year and hoping to reach €100M in revenues in the next four years.