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Bairro: a food tech revolution 🍝🏬

Country: Portugal 🇵🇹
Total of investments: €1,2 million
Business model: food delivery

Frequently, thinking everything has already been created prevents us from doing a profitable business. Seemingly, Europe must have launched a bunch of delivery services. However, Bairro can prove you wrong. After conducting market research, Andrew Kokhan found out Portuguese market of instant food delivery was nearly empty. That’s how Bairro’s story began.

Background
The startup was launched in April 2021. Its founder, Andrew Kokhan, moved to Portugal 8 years ago. At launch he invested €100,000 to develop a mobile app and open the first dark store. The company started to deliver products across the downtown of Lisbon. In the next four months, the service began to process and deliver over 2,000 orders a month.

Why Portugal?
What made Andrew start a business in Portugal was its current market volume amounting to €24 billion. Besides, there was no competition in the delivery segment. Surprisingly, Portuguese market lacked a fast delivery service in spite of its high population.

Portugal has one of the lowest salaries in Europe. It gives an opportunity to attract talented and ambitious workers for a relatively small sum of money. Even in Lisbon the rent of storage facilities is pretty affordable. All these factors contribute to the project’s economy.

Furthermore, Bairro has managed to become a partner of the cash-back program. It belongs to a local football club — Benfica.

Investments
No wonder why so many entrepreneurs from the food tech industry have invested in the project. Most of them are the company’s advisors. They aim to help Bairro’s team create the market of mobile delivery from scratch. Currently, the market volume in Portugal is up to 5%. The current investments will be allocated for opening more dark stores and expanding the team.

The startup already have already signed contracts with the largest product suppliers like PepsiCo, Unilever, Nestle, etc. In the next two years, the company is projected to expand the range including alcohol and meds.

Prospects
Now the company is intended to reach 20,000 orders per month. Andrew is also planning to cover the large part of Lisbon and Portu with 50% of citizens. Afterwards, the startup is going to operate across the whole country. Globally, Bairro is expected to enter Spanish and Moroccan markets.

How do you feel about Bairro’s idea? Assess it from 1 to 10 where 1 is poor and 10 is brilliant! 🙌


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