- Avo, a vertically integrated residential and office delivery platform in the US, announced it raised over $80 million in funding. These are the details.
Avo — a New York- and Israel-based vertically integrated residential and office delivery platform in the US — announced that it has raised over $80 million in funding. And its most recent investment (a $45 million Series B round) led by global private equity and venture capital firm Insight Partners will be used to expand operations rapidly across 10 major markets in the next 12 months. Existing investors Kleiner Perkins and JLL Spark had also participated in the Series B round.
Avo has a mission of delivering everything from groceries and alcohol to electronics and personal care items to millions of people daily. And the company’s customizable amenity platform enables residential and commercial customers to obtain everyday items the same day without any minimum order size or incurring any delivery fees of any kind. And the platform also excludes a tipping fee as Avo has a full-time salaried team. Avo is now adding a new major market every month – a dramatic increase in growth that has helped drive revenue 1,000% over the past two years.
Launched in 2017, Avo got its start delivering baby products to parents at nurseries in Tel Aviv. And 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 like Related, Extell, Greystar, FirstService Residential, Tishman Speyer, Cushman & Wakefield and JLL. And 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.
KEY QUOTES:
“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. 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.”
— Dekel Valtzer, CEO and Co-Founder of Avo
“Avo’s platform isn’t just challenging the conventional delivery service model. 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.”
— Jeff Horing, Managing Director and Co-Founder of Insight Partners
“Avo’s amenity — same-day, no-fee grocery delivery — has been a huge hit with our residents,” said Gaztambide. “Our onsite staff also love it because Avo delivers more sustainably, just one drop per day, helping to relieve delivery congestion from our lobbies.”
— Mario Gaztambide, Senior Managing Director at LeFrak
“As global leaders in the real estate industry, we couldn’t be more excited to invest in Avo’s growth. Our goal at JLL Spark is to fuel innovation in the proptech space, and Avo’s amenity offering is exactly the type of innovation we look for.”
— Raj Singh, Managing Partner at JLL Spark
“Avo is an extraordinary perk for our employees. The combination of exceptional service, convenience, and speed make it a great asset for helping save employees time and cultivate a better work-life balance for our teams.”
— Einat Baharav, Employee Experience lead at KPMG’s Tel Aviv office
“Our lives are busier than ever and we all need help in freeing up time to focus on what’s important. Avo is doing just that, by providing high-quality on-demand amenities and services from grocery and housekeeping to virtual events and corporate gifting, delivered to happy customers at home and at work. How we shop and interact with daily services is being fundamentally transformed by technology and this transformation has been rapidly accelerated over the past few years.”
— Ilya Fushman, a partner at Kleiner Perkins
