Press release from 29 June 2023
Farmy: Investors convinced of success
With its unmistakable DNA of transparency, sustainability and regionality, Farmy has won over new and existing investors in a further round of financing. Strengthened by the new capital, the young company is moving purposefully towards profitability with a strict action plan – and with a new familiar face: Dominique Locher has been Chairman of the Board of Farmy AG since April.
Source: Farmy
Farmy, like many other companies in the food tech segment, has had to cut back. After the economic downturn and the worst consumer sentiment in 50 years, investors' requirements have also changed: it's not about massive growth, but profitability.
Financing round closed with CHF 10.5 million
It is therefore all the more gratifying that the current financing round has been completed and investments of CHF 10.5 million have been secured. These come mainly from existing investors, but also from new investors who support Farmy and believe in the success of the company, whose core strengths continue to include its sustainability, transparency and close relationships with Swiss farmers and small and medium-sized food producers from the region. Until the end of October, the managing directors of Farmy AG have the opportunity to raise up to CHF 5.5 million in additional capital – at the same attractive conditions.
Dominique Locher, Chairman of the Board of Directors of Farmy AG, sees the successful conclusion as confirmation: “It is a strong sign of Farmy's success that many of our existing investors continue to back us and once again express their fullest confidence in us through their investment. We are very pleased about this. At the same time, we are aware that the path to profitability is a challenge. But I am looking forward to mastering it together with a super committed and motivated team.”
Measures to increase profitability are already having an effect
As part of the financing round, the company's valuation had to be lowered by 75 %, which is in line with the current trend in the market towards lower valuations for online retailers and start-ups. The prospects for a renewed increase in the valuation are good. The Zurich hub is already making a profit operationally and covers all monthly fixed and variable costs of the logistics centre.
The crowdinvestors who joined in autumn 2022 had the opportunity to invest pro rata in order to be able to maintain their stake in the company.
In addition, the following measures were implemented and successes achieved in recent months:
- Increase in average order value by approx. 25 % within 4 months from CHF 120 to over CHF 150 due to adjustment of delivery conditions
- Cost reduction by about 50 % within the last 6 months
- Operational profitability at the Zurich hub
- Dominique Locher took over as Chairman of the Board of Directors from his predecessor Adrian Bührer in April 2023 and supports the founders with his expertise as former CEO of LeShop (Migros Online)
- Inclusion of the full Alnatura range as well as selected big international brands
Farmy intends to use the new capital to invest further in growth so that the company is financed until break-even. This is planned for 2025.
Everything in one place
Farmy's focus continues to be on Switzerland, both in terms of the expansion of its delivery areas and with regard to its more than 1,200 producers and suppliers. At the same time, following the inclusion of the full Alnatura range, the brands of the large-scale international producers that are popular with consumers have now also been added to the range.
As a result, in addition to numerous fruits and vegetables, fresh bread and pastries from eight regional bakeries and confectioners, the widest selection of cheese and dairy products from Swiss farmers, meat from eleven butchers, fresh fish and seafood just like at a Mediterranean fish market, as well as flowers and wine, customers can now also order a selected range from big brands at Farmy. Thanks to Farmy, the complete weekly shopping is made even more uncomplicated and transparent, all in one place – customers save themselves the time-consuming trips to the bakery, the butcher's shop, the farm shop, the Alnatura Bio Market, the weekly market and the supermarket.
Trends and family
With these achievements and concrete measures for the coming period, the founders and co-CEOs Roman Hartmann and Tobias Schubert are positive about the future. “We are firmly convinced that we will soon return to the path of growth,” explains Schubert. In doing so, the company continues to rely on its innovative strength: Farmy has been successfully anticipating and responding to social trends since the beginning of the company's history. “As we always say: The trends are Farmy's friends!”, adds Schubert. After all, conscious, high-quality nutrition continues to be important for Swiss men and women, and the shift from offline to online grocery shopping is unstoppable – it is just getting started, in fact.
With the recently launched Farmy Family Club, for instance, Farmy now offers exclusive discounts as well as partner offers and much more especially for families. Well thought-through filters make it easier to make purchases that are perfectly tailored to children's needs.
About Farmy
Farmy is the online market that really has it all. The B Corp, certified with an above-average score of 103.6 points, convinces with its distinctive DNA of transparency, sustainability and regionality. Farmy thus represents 1,200 farmers and producers from Switzerland – with a clear focus on fresh products, which account for over 60 % of sales. The offer ranges from fruits and vegetables to Swiss cheese and dairy products, butcher-quality meat, fish, crispy delicacies and sweet temptations such as bread and pralines to drugstore items, flowers and wine. In addition to fresh farm shop products and a share of over 50 % of organic goods, Farmy now offers a selected range of brands to make the complete weekly shopping trip uncomplicated and transparent, all in one place.
Press contact
Roman Hartmann (Co-CEO and Co-Founder)
Mobile: +41 76 215 27 62
E-Mail: roman@farmy.ch
PRfact AG
Britta Seifried-Fedder
Phone: + 41 43 322 01 10
E-Mail: farmy@prfact.ch
The media release in all language versions as well as pictures is available for download here.
