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A Sydney-based grocery delivery app that promised 46,000 users their orders in under 10 minutes has gone into voluntary administration after launching eight months ago.
Employing 300 staff, SEND’s delivery network operated in 52 suburbs across Melbourne and Sydney, which involved the use of dark warehouses to stock and pack orders quickly.
Administrators Matthew Kucianski and Matthew Jess from Brisbane-based insolvency firm Worrells have been appointed to SEND and will investigate the company’s options. Before their appointment, discussions of a potential sale, merger or takeover had already commenced.
“Like many tech start-ups, SEND had a sizable cash burn that was being deployed to grow its market share,” Kucianski said.
While sharing a similar name, the app is not be confused with fintech Send Payments, which secured $5 million in an oversubscribed ‘growth capital’ round earlier this year.
“SEND has been successful in building a leading position in the grocery delivery space, however, as a start-up it requires ongoing financial support,” Kucianski said.
“SEND has faced some unique financing challenges given the composition of its international investors.”
Kucianski also noted that SEND’s staff would be contacted by administrators about their employment status and outstanding employee entitlements.
SEND launched in August 2021 after closing a $3.1 million investment round with backing from Germany-based Cherry Ventures and New York-based FJ Labs.
The app aimed to capitalise on the demand for contactless delivery in the midst of the pandemic and promoted its “sense of immediacy” as a selling point compared to retail giants such as Coles and Woolworths, which offer same-day delivery.
At the time of launch, the company had signed leases for shops in both Sydney and Melbourne and was aiming to open 30 locations by the end of 2021.
SEND founder Rob Adams – who previously worked for restaurant order app Hey You and Tyro Payments (ASX: TYR) - said the company had firmly set its sights on “a national offering.”
SEND did not include a delivery fee for the first three orders made by new users and also allowed free delivery for any orders placed over $30. Purchases made under that amount were charged a three-dollar delivery fee.
The future of the company will be determined between 20 to 30 business days during a second meeting with creditors.
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