Swiss online market and B Corp, Farmy, has successfully closed a €10.7 million financing round. The fresh capital comes primarily from existing investors, supplemented by new investors who believe in the company's sustainability, transparency, and strong relationships with Swiss farmers and regional SME food producers. The company plans to invest the new capital in further growth, with the goal of breaking even by 2025.
The fundraising round involved a 75% reduction in the company’s valuation, reflecting the current market trend towards lower valuations for online retailers and startups. However, prospects for an increase in valuation remain promising. Farmy's Zurich hub is already profitable, covering all monthly fixed and variable costs of the logistics centre.
Farmy’s managing directors have the opportunity to raise up to an additional €5.6 million in capital by the end of October, under the same conditions. Crowdfunding investors from autumn 2022 had the chance to invest pro rata to maintain their stake in the company.
Dominique Locher, Chairman of the Board of Directors at Farmy AG, sees the successful funding round as validation. "The fact that many of our existing investors continue to back us and express their confidence in us through their investment is a strong sign of Farmy’s success," Locher said. He acknowledged the path to profitability is a challenge but looked forward to facing it with a highly motivated team.
Since its founding in 2014, Farmy has kept its focus on Switzerland, expanding its delivery areas and maintaining relationships with more than 1,200 producers and suppliers. Farmy recently included the full Alnatura range in its offering, alongside products from large-scale international producers popular among consumers.
Farmy's product range includes fruits and vegetables, fresh bread and pastries from eight regional bakeries, the widest selection of cheese and dairy products from Swiss farmers, meat from eleven butchers, fresh fish and seafood, flowers, wine, and a selection from big brands. Customers can do their entire weekly shopping at Farmy, saving time on trips to different outlets.
Co-CEOs Roman Hartmann and Tobias Schubert are optimistic about the future. "We are firmly convinced that we will soon return to the path of growth," Schubert said. The company continues to bank on its innovative strength. Schubert added, "As we always say: The trends are Farmy’s friends!" The move from offline to online grocery shopping is just beginning, aligning with the growing trend among Swiss consumers for conscious, high-quality nutrition.