The Spanish wants to start the year with a big bet: install their smart mailboxes throughout Europe. To carry out its plans, the startup will ask for the help of the market to achieve obtain financing for 246 million euros in the next five years.
Learn about Citibox’s ambitious plans
As you may remember, on previous occasions we have told you about Citibox: a Spanish company that manages smart mailboxes located in common areas of buildingswith which users can receive and even send products without having to be at home at the time of delivery, and although it is similar to the services of or , Citibox’s proposal has some differentials.
For example:. Through the Citibox mobile app, the user stay informed about ongoing orders and those that are waiting to be picked up, indicating the mailbox in which they are located. In addition, order picking is supported visually with videosmaking it easier to interact with the mailbox from the first moment, and the courier company does not have to make a previous delivery to the offices of .
A few months ago, he explained to us the importance of this app for his startup’s business model, which even has alternative services such as dry cleaning, clothing and shoe repair and bakery.
As he has anticipated, Citibox’s plans are to expand its 8,000 mailboxes until reaching around 1,700 million! all of them installed by 2023.
First Madrid…and then the rest of Europe
As in Citibox plans you will find install 310,000 devices in Madrid over the next 14 months, which will cover 60% of the city’s buildings. To achieve his plans, this very month of January he will begin a round of presentations with investorsin which, together with the investment company Alantra, it hopes to raise 26 million in debt maturing in five years, and another 5 million in capital.
By February 2019, Citibox’s plans will focus on closing deals and in March the funds are expected to be disbursed, according to their schedule. Same formula with 80% debt and 20% funds own is the one that is expected to be replicated in each city to which they arrive.
But Madrid will not be the only city included in Citibox’s plans, since the company looking to get to Barcelonawhich he plans to conquer by 2020, in addition to making his international leap that same year he plans disembark in paris.
By 2021, Citibox’s plans will focus on reaching London, Frankfurt, Berlin and Hamburgand between 2022 and 2023 its international expansion will be directed towards Amsterdam, Stuttgart and Munich.
How will you get your funding?
But obtaining the necessary financing for such a large expansion will not be easy, which is why Citibox plans create a subsidiary in each city, which will have the exclusivity to install the company’s mailboxes in that area.
On the other hand, the parent company will pay its own subsidiaries a fee for the use of mailboxes owned by it, while attracting clients and obtaining permits from the neighboring communities will be carried out by external companies.
With its expansion plans in Madrid alone, Citibox expects to reach 920,000 active users they carry out around 1.2 million monthly transactionswith which its turnover will rise to 600,000 euros.
Remember that the service Citibox is free for users, so their business model is to charge carriers a commission, who earn time and money through the Citibox system.
Image:
Stay informed of the most relevant news on our news channel
Facebook Comments
Disqus