The FGB Digest brings you the latest news on the world’s fastest growing direct-to-consumer and challenger brands. In today’s edition: AB InBev latest FMCG giant to try DTC experimentation; BUX expanding app to Germany and Austria; and Lemonade files to go public.
AB InBev latest FMCG giant to try DTC experimentation
AB InBev has started testing its own direct-to-consumer webshop. The Belgian beer giant offers next-day delivery for five of its brands.
AB InBev is the next in the series of large FMCG producers that has been pushed to direct-to-consumer web sales by the Covid crisis. With just five brands involved, so far it is just a small-scale test.
The brewery group had toyed with the idea for a long time, spokesperson Karolien Cloots added, but the long lockdown meant that AB InBev could no longer sell its beers to pubs and restaurants, meaning the beer giant had to look for other distribution targets.
The Leuven-based company charges five euros for next-day delivery of orders smaller than 24 cans or bottles, larger orders are delivered for free.
AB InBev joins the likes of PepsiCo and Nestlé, who also have started direct-to-consumer trials in order to compensate for the loss of sales elsewhere.
BUX expanding app to Germany and Austria
Today Dutch fintech startup BUX, a commission-free investing startup, continues its European expansion with the official launch of its app BUX Zero in Germany and Austria. BUX is already present in nine European countries, and has snapped up 2.5 million users.
The coronavirus pandemic brought many young investors to the stock market, in some cases for the first time. This surge of new customers for BUX generated significant capital inflows for BUX Zero, with assets under management almost tripling in March alone.
BUX Zero initially launched in the Netherlands in September 2019, is expanding now to Germany and Austria, and will be targeting France for the next phase of its European expansion plan for the summer of 2020.
“As the economic landscape continues to change across Europe, and it becomes more difficult for younger generations to prepare for their financial future, young Europeans need better options to help them build wealth,” said Nick Bortot, Founder and CEO, BUX. “With the introduction of BUX Zero in Germany and Austria, we are offering a simplified investing experience for a new generation of investors who are looking for a convenient, inexpensive solution to put their money to work.”
Lemonade files to go public
Lemonade, a heavily-backed startup that sells renters and homeowners insurance to consumers, filed to go public today. The company (backed by SoftBank) releasing its financial results helps shed light on the burgeoning insurtech market, which has attracted an ocean of capital in recent quarters.
Looking at the numbers, the pitch is a bit forward-looking. Dissecting Lemonade’s IPO filing, the business shows that while it can generate some margin from insurance, it is still miles from being able to pay for its own operation.
Lemonade is targeting a USD$100m IPO according to its filings. That number is imprecise, but directionally useful. What the placeholder target tells us is that the company is more likely to try to raise USD$100m to USD$300m in its debut than it is to take aim at USD$500m or more.
So, the company, backed by USD$480m in private capital to date, is looking to extend its fundraising record, not double it in a single go.
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