Vertically integrated residential and office delivery platform Avo has revealed that it has so far raised $84 million in funding. The company’s most recent investment, a $45 million Series B round led by New York-based global private-equity and venture capital firm Insight Partners, will be used to rapidly expand operations across 10 major markets over the next 12 months. Existing investors Kleiner Perkins and JLL Spark also took part in the Series B round.
Avo’s goal is to deliver everything from groceries and alcohol to electronics and personal care items to millions of people daily. Its customizable amenity platform allows residential and commercial customers to get everyday items the same day, without any minimum order size or delivery fees. The platform also excludes tipping, since Avo has a full-time salaried team. In response to the COVID-19 pandemic, Avo is currently adding a new major market every month – a sharp increase in growth that has helped lift revenue by 1,000% over the past two years.
“At Avo, you can order as little as a single avocado, and that’s all you’ll pay for – and our explosive growth is proof that our model is resonating,” noted Dekel Valtzer, the CEO and co-founder of the New York-based company. “Our belief is that people shouldn’t be surprised by last-minute fees at checkout. We’re thrilled that this new investment will allow us to deliver delight to so many more commercial and residential communities across the country.”
“Avo’s platform isn’t just challenging the conventional delivery service model,” said Jeff Horing, managing director and co-founder of Insight Partners. “It’s also providing customers with an innovative way to drive engagement and retention with their tenants and employees. We at Insight are thrilled to play a part in the company’s growth story and look forward to working together to help them become a category leader.”
Since its start delivering baby products to parents at nurseries in Tel Aviv, Israel, Avo has grown its offerings and reach across Israel and into the United States, where it serves thousands of residential communities, corporations, hospitals and universities in New York, New Jersey, Chicago and Houston. The company’s existing customers include many of the country’s biggest real estate developers and property managers, including Related, Extell, Greystar, FirstService Residential, Tishman Speyer, Cushman & Wakefield, and JLL, and it also partners with such Fortune 1000 organizations as Facebook, KPMG, Microsoft, Apple, AT&T, Booking.com and PwC. Residential and commercial customers alike can take advantage of such solutions as Avo’s personal delivery perk, virtual pantry, and event and gifting offerings.
The company is also now hiring for various roles on its team.
Other companies in this space that recently raised significant amounts of funding include Philadelphia-based GoPuff, which was able to secure an impressive $1 billion, and New York-based Jokr, which received $170 million from tech investors.