Munich-based Arive, an online delivery platform that claims to deliver a wide range of essential products at customers’ doorstep in 30 minutes, has raised $20M (approx €17.63M) in its Series A round of funding.
The round was led by Balderton Capital. Global Founders Capital and Burda Principal Investments also participated in the round, along with existing investors La Famiglia and 468 Capital.
After launching its services roughly four months ago, Arive has raised a total of $27M (approx €23.8M). Prior to this round, it had raised €6M in its Seed round of funding in September 2021.
Funds to expand Arive’s x-commerce model across Europe
The proceeds from this round will help the company to expand across the continent to bring its x-commerce experience to more customers across Europe. In addition, the funding will also be used to launch the connected retail vertical and develop the app and delivery experience to create the high-end experience customers are looking for.
Maximilian Reeker, co-founder of Arive, says, “We will use the new funding to continue our rapid growth strategy, including further expansion in Germany, launching in more European cities, plus doubling our team size. In addition, we will continue to connect and integrate premium retail stores to offer our customers an even better range of products and shopping experience to further change buying habits.”
The company’s expanded product offering and a new connected retail vertical will allow local premium stores to list their products on the Arive app and use Arive’s couriers to deliver orders to customers.
In the near future, Arive also has plans to introduce a scheduled delivery system so that customers can browse new and in-demand products from their home, and receive them whenever they want.
Arive’s shopping model
The company aims to change how people shop. According to Arive, its tech stack, curated selection of known brands, and last-mile delivery logistics helps consumers order anything from fitness products to cosmetics, personal care, homeware, tech and fashion and have it delivered to their door by an environmentally-friendly fleet.
The company says it is serving consumers who are busy and impatient, and who have become used to receiving groceries at light speed. By redesigning what delivery can be by providing an experience commerce (x-commerce) service, Arive is improving the end-to-end shopping process and taking on existing e-commerce platforms.
Since Arive launched its shopping model in Munich, Berlin, Hamburg, and Frankfurt, it has reached around 100,000 app store downloads as well as inbound requests from iconic brands. New brands are vetted before they can be added to the platform, depending on criteria that include sustainability, impact on culture, and brand values. Recent additions include e-bike startup VanMoof, Bala, and Dr. Barbara Sturm, among others.
How does it work?
Once a user places an order, the products are picked up by Arive staff in city warehouses and then delivered by a bike-only fleet in 30-minutes or less.
Brands on the Arive app are chosen depending on multiple criteria which include sustainability, impact on culture, and values. The app also has a wishlist and brand request function that allows customers to advocate for the companies and products they love.
Linus Fries, co-founder of Arive, says, “Established and iconic brands are always looking for new and exciting ways to reach their customers. But the current commerce supply fails to deliver an adequate environment. No brand wants to see their premium product stuffed between late-night snacks and last-minute groceries.”
Arive works directly with brands to offer a selection of their products for on-demand delivery, offering them a new distribution channel as well as a set of new customers. The company earns its revenue through margins or commissions on the products it sells.
Arive says that the 30-minute delivery guarantee means it doesn’t need as many micro fulfilment centres as grocery players, helping it to keep infrastructure costs low.