RE: Fresho Oz12 Mar 2021 21:19
Topdog21 - their website is at https://www.fresho.com/
To give you an idea of how adaptable the management team are they accelerated part of their strategy. I quote from the April 20th 2020 PRIM quarterly update RNS in the section about Fresho...
"Fresho is a business that we first invested in back in 2017. It has since then developed a business to business ('B2B") platform for wholesale suppliers to seamlessly fulfil many thousands of fresh food orders a week across Australia, New Zealand and now the UK. The key point of Fresho is it allows many large and highly sophisticated businesses and less sophisticated ones in the supply chain to interact and trade via a single source and neutral platform. This platform generates huge efficiencies for all participants by reducing manual inputs, integrating with accounting and stock management systems and invoicing and generating sales tax reconciliations. Since we invested, the upward trajectory of gross order volumes has been impressive and the company finds itself in a strong financial position having reached a position where it could be EBITDA positive if it chose to spend less on growth.
Clearly the current crisis has and will significantly impact the volume of B2B business with restaurants and venues closed and or heavily restricted. As a result, several key suppliers asked if Fresho could be spun around to allow sales direct to customers like you and me, business to customer ("B2C").
Out of crisis often comes real opportunity. In the week or so since Fresho began turning B2B suppliers into B2C vendors, demand has exploded. At the time of writing and solely by word of mouth over 25,000 households in Australia and New Zealand have signed up to Fresho order-for-your-home.
Whilst B2C was always on the roadmap for Fresho, the strategy had been to continue to focus on the extraordinary growth in the B2B business. Since the world changed overnight, Fresho now finds itself on a potentially game-changing path with both business streams growing in parallel.
Significantly, Fresho has continued to add a number of large food wholesalers for its B2B business as well. It is likely that many of these have been spurred to make real business process change in light of the current crisis to ensure they are competitive when the world returns to normal.
Fresho has significant cash reserves to weather the current dip in B2B business and so, despite an inevitable short-term hit to gross order volume and revenue, we believe Fresho will emerge as a significantly stronger and more financially diverse business. Given sectoral valuations of B2C businesses are often higher than those of B2B (owing to higher margins in the former compared to the later) we also believe the potential exit for us as shareholders may be much higher should the B2C business continue to grab customers."
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