Jiffy Software raises a new round of funding
The startup, which provides full-stack software solutions to transform sales to online and build a robust ecommerce system, has successfully raised $2.2 million led by I2BF Global Ventures and Somersault Ventures with many existing investors participating.
Founded in 2021 and started out as a qcommerce (quick commerce) business in London, Jiffy made a pivot to become a dedicated software company in May 2022. A solution that the team developed for their own online retail business automation served as the basis for this strategic move.
Previously, the startup closed $35 million in funding as a 15-minute grocery delivery business. During 2022, the company generated about $20 million in ARR, provided 99.99% order fulfilment thanks to online store tracking and robust picking processes and hit eight seconds on the average to pick one item. It means that only one item out of 10,000 was not delivered, which is a good result for the food and goods delivery industry.
Smart order batching with automatic courier assignment and other optimisation of couriers' work helped halve order delays. By utilising the growth cycle approach, the company achieved significant target metrics in a short period of time both in the area of revenue growth and optimisation. Particularly, gained a 122% increase in gross margin in just four months.
The Company saw the need for an IT platform for ecommerce long before pivoting, however it took the Company four months to transition. This idea had been researched as an alternative business model a year before the change, but at that time the focus didn't need to be shifted significantly.
In December 2021 it became increasingly clear to the founders that a complete change to the business model was necessary, as the impending economic crisis made it extremely difficult to attract a new round of funding to the capital-intensive and risky business model of fast delivery.
In March 2022, it was evident that new investments would not be made, and by May, a plan was developed to shut down all the stores and reduce employee count while adhering to the UK law.
A timely decision and a well-developed plan enabled the Company to retain sufficient capital to change its business model. Within a month, all goods in stores were sold to the existing customers. Everything that was left after the big sale was transferred to specialised companies for sale. Even after the company's change of direction, it still has its product, the ecommerce software, developed for their previous needs. The platform has shown success in business, as the founders offered their solution to other retailers who faced the same problems in online retail.
Currently, Jiffy Software helps businesses make the transition to ecommerce quickly or improve their workflows. From automated ordering and automatic replenishment based on smart algorithms to real-time reporting and improving turnover, the team applied all their knowledge of selling online to the software solution.
As a software company, now Jiffy specialises in developing software-as-a-service (SaaS) and on-premise solutions tailored to meet the needs of businesses in the Grocery, F&B, Fashion, Pharma, Electronics industries, and more. The solution covers all aspects of ecommerce, including full-stack or separate ready-to-use modules, such as app & web, headless ecommerce, warehouse/store management systems, supply chain and replenishment, delivery, and business intelligence (BI).
To ensure that the product addresses modern ecommerce demands, the company concentrates on providing an omnichannel approach to help businesses effortlessly reach customers across every touchpoint. It also uses a mobile-first strategy to guarantee a mobile-centric experience that resonates with today's smartphone-savvy audience. Additionally, Jiffy extends beyond software, providing consulting services to assist businesses with improving their operations and increasing revenue.