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Why we invested in La Nevera Roja


rundesign - 1 Marzo 2018 - 0 comments

By Carlos Vázquez, Investment Manager at Ad4Ventures Spain (Mediaset Group).

Ad4Ventures is the venture capital arm of Mediaset Group (leading free to air television broadcaster in Spain and Italy), focused on television media for equity deals. Ad4ventures has become the largest media for equity player in Southern Europe.

What is it?

Leading food delivery online and mobile platform in Spain, with increasing integration with the restaurants both technologically and logistically (through an own logistic activity).

Why?

· User engagement: cohorts analysis showed an incredible repetition profile, making units economics attractive.

· Proven business model with high growth rates

· TV fit: need to increase restaurant base, while improving liquidity and trust. High repetition profile, i.e. LTV, allows to increase CAC for a certain period of time to reach scalability and lead the market.

Very effective marketing tool for acquisition and to improve cohorts (especially when you launch TV spots right before dinner on a rainy Sunday evening before the match of the century…)

· And of course, the TEAM, really impressive!

The Exit:

The business continued its exponential growth, reaching leadership in the Spanish market, with strong brand awareness, creating barriers to entry in the sector to any other new player or international competitor.

La Nevera Roja was sold to Rocket Internet in 2015, resulting in a very attractive return for the investors.