An online groceries startup that set out to break New Zealand’s supermarket duopoly has raised NZ$3.9 million
The startup, founded in 2021, opened its latest funding round in June through Snowball Effect with a target of raising $2.5 million and a cap of $3m, but extended the raise due to overwhelming interest.
The funds will be used for Supie to support its Auckland expansion, technology development, marketing initiatives to drive membership growth and working capital to continue to fund expansion, inventory, people and operations.
Founder Sarah Balle launched her online supermarket “to disrupt the broken grocery industry in New Zealand” and promote local producers. Supie now has more than 27,000 members after 12 months of trading with over 6,500 grocery items to choose from.
Balle said Supie is also responding to the lack of access to wholesale supply of groceries in New Zealand in the wake of an NZ Commerce Commission report recommending the duopoly be required to provide access to wholesale supply.
“Over the last three years, Supie has built its own wholesale supply from over 350 suppliers and is seeking expressions of interest from retailers looking to access wholesale groceries,” she said.
The business already hit an annualised revenue of $6.5m in FY2022.
“We are humbled by the support from kiwi investors. From what started as an ambitious idea back in 2018 is now a reality and it’s incredible to see everyday kiwis aligning with our mission and coming on the journey with us,” Balle said.
During Supie’s seed funding round, it raised $2.5 million, led by Icehouse and supported by Enterprise Angels and Arc Angels, a fund focused on investment in female entrepreneurship.
Snowball Effect is New Zealand’s leading online investment marketplace and helps high-growth Kiwi companies raise capital from private investors, family offices and the public.
CEO Simeon Burnett said the capital raise for Supie set the record for the largest number of investors in a single raise.
“The raise saw strong demand from a wide range of kiwi investors, big and small, and we’re proud to provide a platform that allows a wide range of investors to back ambitious companies like Supie,” he said.