Grabango, a frictionless checkout solution at grocery and retail locations using a visual AI camera platform, where customers walk into a store, grab the items they want, and then walk out, with no need to stand in a line to checkout with a cashier or to scan each item in a self-checkout line. Grabango was founded by Will Glaser, former Co-Founder, CTO, & COO of Pandora (an online music platform, acquired for $3.5B by SiriusXM).
Completed a number of long term pilots (12+ months) with grocery stores, which has proven that Grabango can bill shoppers with 99% accuracy, a huge accomplishment, and is something that no other company can do at this point in time by only using cameras, including Amazon, Walmart, and a number of other startups who have tried.
Grabango has grown from 1 to 16 live stores as of December 2023 and has current contracted revenue at over $12.5M+ for client deployments in 2024 (a 2.5x YoY increase from ~$5M in 2023) across ALDI, 7-Eleven, Chevron, Copec, Pronto, Lidl, Circle K, ExtraMile, Couche-Tard as existing customers.
Grabango's current customers at full deployment across all of their locations is worth ~$6 Billion in revenue per year. Using a 5-10x revenue multiple could value Grabango at $30B-$60B in the future, just based on existing customers under contract, not including any new customers in their pipeline.
The Company's deployment plans for 2024 is to grow to 268 live stores across its nine existing customers.
Aldi, a large global grocery store chain, recently signed a contract to roll-out 10 new locations in the U.S. at $250K per year per store, after a successful pilot in one location. Aldi has over 2,300+ locations in the United States and over 6,000+ locations in Europe. Aldi has expressed interest in rolling out Grabango to ~1,000 of their 2,300 stores, and if discounted to ~$200K/yr/store (vs. $250K/yr/store) for doing a large location volume deployment, 1,000 stores would be worth ~$200M in revenue per year. Using a 5-10x revenue multiple on $200M in revenues could increase Grabango's valuation to $1B-$2B (~10-20x the current $100M valuation), and this is based on only <50% of one client's US locations. All of Aldi's 2,300+ US locations is worth $460M in revenue per year and all of Aldi's 6,000+ europe locations, which are a smaller physical stores and would be $50,000-$100,000 per store, would be worth $300M-$600M in revenue per year.
Copec (Pronto) has signed a contract for 100 stores at $30K/store (a ~$3M Contract) and is investing $3.5M in the current round.
Grabango is in the process of launching the first 10 stores with 7-eleven in Australia.
Grabango's plan is to go public with a valuation between $5B-$20B (~100-200x the current $100M valuation), which can be achieved with $1B-$2B in revenues at a 5-10x revenue multiple, or ~25% of Grabango’s current customer locations.
Grabango’s notable investors include Commerce Ventures, Founders Fund, Tuesday Capital, Synchrony Ventures, Propel Venture Partners, Ridge Ventures, and VU Venture Partners.