In the wake of the COVID-19 pandemic, our lives have undergone significant changes, leading to the emergence of various services catering to the needs of newborns. One such business that successfully adapted to the pandemic is Waysia, an Asian grocery delivery service.
Originally known as Alorsfaim, Waysia started its operations in Paris four years ago, serving as a platform for delivering food from Asian restaurants and supermarkets to customers. However, when the pandemic hit, panic buying resulted in a rapid depletion of retailer stocks, prompting Waysia to take action.
To address the supply-demand imbalance, Waysia established its own warehouse and began sourcing directly from suppliers, including Asian vegetable farms in the Netherlands, France, and Spain. This shift allowed the company to ensure a steady supply of groceries for its customers.
Yejun Fan, the founder, and CEO of Waysia, recognized that the pandemic highlighted the unmet demand for ethnic groceries in Europe. While a few businesses already provide Asian takeout services, Yejun Fan, a serial entrepreneur with a banking background, believed that online ethnic grocery services were still relatively uncommon.
The supermarket pivot proved beneficial for Waysia, leading to increased revenues and enabling the company to secure approximately €10 million in a Pre-A financing round. Notable investors such as iFly.VC, Cathay Innovation, and Goodwater Capital participated in the round, with Banyan Pacific Capital leading the investment.
In the North American market, Weee! serves as the equivalent of Waysia and has garnered support from renowned investors like Tiger Global, Blackstone, DST Global, and SoftBank. Goodwater and iFly.VC is also an investor in Weee!, showcasing its confidence in the Asian grocery delivery sector.
Waysia’s recent financing round attracted notable investors such as Datastore, a digital retail fund founded by Daphni and Carrefour, and Convivialité Ventures, the venture capital arm of French wine and spirits company Pernod Ricard. This demonstrates the interest of major French players in ethnic minority consumers.
Waysia operates on a marketplace model for e-commerce grocery sites, earning revenue through sales commissions and affiliate marketing. The company focuses on high-margin products to optimize inventory management. While selling a pound of strawberries may not yield as much profit as a bucket of flash-frozen shrimp, it allows for higher sales volume. Finding high-profit-margin goods and catering to in-demand products are key strategies to maximize profitability, although residing in an area with high demand may result in higher inventory costs.
Waysia’s delivery business strategy aligns more closely with Amazon Prime Now than with Uber Eats, prioritizing delivery fees and affiliate marketing for additional revenue streams. Through its website, Waysia promotes various items, including insurance, cell subscriptions, and broadband services.
With ample opportunity for growth in a nation where only about one in five people purchase groceries online, Waysia plans to expand its consumer base. According to a Nielsen survey, one in three individuals expresses interest in buying food online.
To accelerate growth, Waysia is experimenting with different customer categories and marketing channels, aiming to determine the most effective strategies for attracting new customers. Additionally, the company seeks to enhance brand awareness by increasing user-generated content on its platform. By ensuring customer satisfaction, Waysia aims to retain its existing user base while simultaneously acquiring new customers. The company is exploring customer retention techniques such as personalized marketing, email outreach, and product cross-selling.
With the support of further funding, Waysia has plans to enter the UK market. Currently, it delivers Asian foods to 16 cities across France, Belgium, and Luxembourg, employing a staff of 50 dedicated individuals.
