Tiggy raises $6.35 million in seed funding

The Grocery delivery startup Tiggy is a new player in the Canadian quick commerce space, announced $6.35 million in seed funding to get its dark stores up and running to accommodate 15-minute deliveries.

E-commerce sales are a $29 billion market in Canada, but food delivery is still nascent. Eugene Bisovka and Razmik Sukyasov co-founded Vancouver-based Tiggy in July 2021, just about the time that Instacart announced it was beginning food delivery in Quebec, giving the food delivery giant access to all 10 Canadian provinces now.

Many individual grocers offered their own delivery during the global pandemic, in addition to the delivery incumbents Instacart, PC Express, Inabuggy, DoorDash and Uber Eats. Tiggy is taking the approach of offering a faster delivery, with no minimum charge or no extra cost, which Bisovka told TechCrunch differentiates the company from its competitors that have longer delivery times and associated fees.

“What impressed me was that Canada has a $100 billion market and almost no food delivery players,” he added. “That was a big reason we chose this market. You can get groceries from DoorDash or Uber Eats, but it takes one hour for delivery and they charge fees, so it is not clear what the final price will be.”

Employing a dark store model is another differentiator, as the model is one that is “virtually non-existent in Canada,” Bisovka said. They explained that the dark store approach leads to hundreds of additional orders per day in the $25 to $30 range, with a projected contribution margin between 10% and 12%.

The company launched its service in September with over 1,400 SKUs, including pantry staples and fresh fruits and vegetables. It is also encouraging more consumer behaviour toward on-demand shopping, for example, if you’re cooking and run out of an item or realize you don’t have it.

Heartland led the seed round and was joined by Global Founders Capital, FJ Labs and Redbox Ventures. With the new capital, Bisovka intends to double the amount of SKUs offered, expand Tiggy’s footprint in Vancouver with two new dark stores — it already has four stores — and enter Toronto with five stores by the end of the year. It also gives the company a solid runway to open 350 fulfilment centres across the country by 2024.

Though Bisovka declined to discuss growth metrics outside of having now employed 150 people in five months, Turner Novak, founder of Banana Capital, and one of the company’s early investors said Tiggy was growing “at an impressive pace” and is already disrupting incumbents that have 1 million customers.

“It’s been impressive watching them over the past couple of months,” Novak added. “With the dark store model, there is more of an opportunity to stay capital-efficient, though harder to launch your own fulfilment. If you can do it, you will have more longevity.

Tiggy seems to be the 15-minute grocery delivery on a mission to forever change the way we buy everyday essentials. I’m sure the company will continue to prosper in its journey ahead. My best wishes to the team of Tiggy.

Shishir Gupta, Founder and CEO, of StartupLanes

Don’t keep wondering about funding, you can also raise funds. Learn how to raise funds here: Yes I want to raise funds.

If you are an emerging startup and are looking for investors to raise funds, StartupLanes has its own angel network and investment banking services and is connected to angel investors and VCs in 15 countries that ensure that our member startups have easy access to external funds to scale up constantly.

You can subscribe to our news posts by entering your email in the box on the right side of this page.

Check out our YouTube channel for insightful content from the Indian startup ecosystem.

Or join our Whatsapp group to interact with other founders: Yes, I want to join the Whatsapp group.

The right investment is key to beating inflation and growing your wealth. Do you wish to become an angel investor? Yes, I want to be an angel investor.

Are you a startup and facing challenges in your business? Do you want to grow your business? It is not as difficult as it sounds. Learn how to grow your business here- Yes, I want to grow my business.

For publishing an advertorial article about your company on our website, drop an email at anisha@startuplanes.com