Israeli delivery platform Avo must surely be a startup that really does deliver the goods as it has raised $84 million in capital to date. Avo reached that amount with a $45 million Series B round led by New York-based global private equity and venture capital firm Insight Partners. The company is now planning on expanding their operations in 10 major U.S. markets over the next 12 months.
Well, it certainly makes sense that a delivery services company has grown in size and value during the times of the Coronavirus. In addition to there being a lot more work for the delivery people, companies that make all manner of cardboard boxes also cleaned up these past 18 months.
And Avo has acknowledged that the Covid crisis helped to spur its growth. Stemming from the COVID-19 pandemic, Avo stated that they are currently adding a new major market every month. This, says the company, is a dramatic increase in growth that has helped drive revenue 1000% over the past two years.
Launched in 2017, Avo got its start delivering baby products to parents at nurseries in Tel Aviv. Since then, the company has expanded its offerings and reach across Israel and into the US, 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 most prominent real estate developers and property managers, including Related, Extell, Greystar, FirstService Residential, Tishman Speyer, Cushman & Wakefield and JLL. Avo also partners with Fortune 1000 organizations such as Facebook, KPMG, Microsoft, Apple, AT&T, Booking.com and PwC, who use Avo to increase employee engagement, satisfaction, and retention.
“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,” said Dekel Valtzer, CEO and Co-Founder of Avo. “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.”