GreenBank Capital Announces Agreement to Buy Stake in Beelivery, the Fast-Growing and Profitable Online Food Delivery Platform
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TORONTO, ON/ACCESSWIRE/March 21, 2021/ GreenBank Capital Inc. (CSE:GBC)(OTC:GRNBF)(FRA:2TL) (“GreenBank” or “the Company”) is absolutely delighted to announce that it has entered into a commercial agreement to acquire a significant stake in, and provide merchant banking services to Beelivery, the UK-based, fast-growing and profitable online grocery delivery platform. Unlike virtually all of its competitors in the online grocery delivery industry, Beelivery’s highly advanced and proprietary online ordering and logistics algorithms, combined with its low-cost model, have already enabled Beelivery to reach profitability, while big names in the industry, including the likes of Ocado, continue to struggle to make their businesses profitable. Beelivery, which specializes in fast delivery, offers two delivery options – ‘now’ which offers delivery within 60 minutes (achieving an average of 46 minutes across the UK) and ‘today’ which offers delivery slots with the following 24 hours period. Orders can be placed by customers and deliveries are handled by a team of independent drivers, 24 hours a day, 365 days a year.
As a profitable business in this very fast growing sector, which has recently attracted a lot of investment activity, GreenBank believes that Beelivery, with its low cost and profitable model, should be rated even higher than its loss-making peers. , which themselves are highly rated.
Beelivery, which sources its supplies from any local grocery store to the customer, currently has over 20,000 delivery drivers serving UK customers. Unlike most of its competitors, Beelivery has over 90% national coverage and average delivery times of just 46 minutes.
Currently, many UK supermarkets are finding that the switch to online ordering and home delivery is turning their slim but profitable in-store margins into loss-making home sales – the more customers switch to online ordering, the greater the impact on the profitability of their businesses will be. Already, some UK supermarkets are looking to cut online sales to protect their overall margins, opening up an even bigger opportunity for Beelivery – as its low-cost business model can profitably meet growing customer demand for online ordering. online and home grocery delivery.
GreenBank and Beelivery believe that Beelivery’s profitable business model can be quickly scaled and expanded internationally with the potential to become a globally significant player, initially in the fast trade market. It is also believed that as Beelivery grows to significant size, today’s major industry leaders will see Beelivery as an acquisition target as they seek to address the flaws inherent in their loss-making business models.
Beelivery was founded in 2015 and currently has over 90,000 customers. Just under £8 million (C$14 million) of orders were processed in the last fiscal year to September 2020, generating a profit at the EBITDA level. Having demonstrated the robustness of its business model, Beelivery is now raising funds to rapidly scale the business and expand both in the UK and overseas, with management targeting orders of over £370m sterling (C$645 million) in the year ending September 2023.
GreenBank therefore agreed (and was granted a 65-day option) to invest £2.5 million (C$4.36 million) for an initial 5.883% stake in Beelivery, subject to Beelivery fulfills certain conditions. GreenBank may choose to waive these terms at its discretion. Subject to completion of the investment, GreenBank has also been granted a two-year option to acquire an additional 20% of Beelivery for £40 million (C$70 million) (by subscribing for new shares and/or or by acquiring existing shares from shareholders). In the event that GreenBank chooses to exercise its 20% option, Beelivery (or Beelivery’s selling shareholders) may demand that GreenBank pay the £40 million by issuing new GreenBank shares at C$2 per share rather than by paying in cash.
In addition to this investment, and subject to the completion of the initial investment of £2.5 million, Beelivery has also agreed to appoint GreenBank as its merchant bank for listing on the Canadian Stock Exchange. securities or other international stock exchange as soon as possible, and to act as an adviser on any future fundraising. GreenBank will also appoint a director to Beelivery’s board.
Commenting on the Beelivery deal and the growing relationship, David Lonsdale, CEO of GreenBank Capital, said “Beelivery is an exceptional company with real potential to become best in class in the very rapidly growing global online grocery delivery market. As Beelivery is one of the few profitable companies in this sector, GreenBank is delighted to become a significant shareholder in a company with such potential to add exponential value to our shareholders. idea of being appointed advisors to Beelivery as we cement the relationship moving forward.”
Yazan Bin Mohammad, co-founder and chairman of Beelivery said….”As a successful business in the fast growing and highly valued online grocery delivery market, Beelivery has been approached by a number of investors keen to benefit from the scale of opportunity in this market; however, we chose GreenBank Capital as our next generation merchant bank because we work well with the people at GreenBank and are impressed with their ability to provide the full range of services, value and innovative support that our business will need. in the years to come as we build the business towards our goal of becoming a global leader.”
About Green Bank
green bank is a next-generation merchant banking company with a flexible, low-cost overhead structure designed to maximize profitability. Our leaders are based in Toronto, Dallas, New York and London and are used to working remotely across borders. Our model of remote working, dynamic space and flexible contracts – rather than expensive offices, full-time employees and large fixed costs – makes GreenBank a global merchant bank for the future, both during and after COVID19.
GreenBank is listed on the Canadian Securities Exchange, the Frankfurt Stock Exchange and on OTC markets in the United States. GreenBank invests in undervalued exponential growth companies focused on creating consistent capital appreciation for its shareholders.
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THE SOURCE: GreenBank Capital Inc.
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