Droshi, self-described as the Alibaba of Europe – with a twist – is raising capital on FundedByMe. Droshi is said to be Northern Europe‘s largest drop shipping service. Drop shipping is, “a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer.”
Instead of purchasing a large amount of inventory, you simply partner with a drop shipping supplier and list their merchandise for sale. Then, once you receive an order you forward it to the supplier for fulfillment. The supplier will ship the product directly from their warehouse to your customer, and charge you only for the price of the shipped item. Currently, Droshi reports it has over 135,000 products from over 80 suppliers. Currently their primary market is e-retailers and suppliers in Sweden and Scandinavia. Droshi says there are approximately 15,000 webshops in Sweden and 50,000 in Scandinavia.
At the end of last week, Droshi launched their crowdfunding for equity campaign. They are offering a 2-7% equity stake in the company, leading 25 new investors to already sign up to become shareholders. This has led to Droshi reaching 50% of their funding goal in record time. The firm chose the type of crowdfunding campaign in an attempt to grow its user base, inviting users to be shareholders.
On their FundedByMe page, Droshi describes investor opportunity:
“We now offer you a chance to invest in a fast growing company with a scalable business model, proof of concept and a great team. In a short time we have become Northern Europe’s biggest drop shipping service with over 135.000 products from over 80 suppliers. To meet the increasing demand, we need to scale up our organization and therefore welcome new investors.”
They also claim an expected ROI of 10x within a maximum of 5 years, and claim that they will gladly buy back the shares.
Droshi was founded in 2015 and claims to be one of the market leaders in virtual wholesalers. They plan on creating the largest drop shipping portal in Europe, playing off of the method’s success in the United States.
In addition to drop shipping, Droshi also offers special services that simply e-commerce of their clients through global bulk ordering (the twist).
CEO Jonas Salminen commented on using FundedByMe to raise growth capital;
“We chose FundedByMe because we believe that the platform’s global presence and previous rate in creating success stories fits well with our ambition to build a big and successful global brand where we aim to make Droshi the leading brand in drop shipping in Europe.”
The CEO of FundedByMe, Daniel Daboczy, praised Droshi, saying:
“The team behind Droshi is one of those hard working and energetic teams that we love to see fundraise on FundedByMe and we just love the execution and idea behind Droshi. This could be a very interesting opportunity.”
Any funding raised is expected to go to new hires (70%) and marketing. Over the coming years, Doshi plans on expanding throughout Scandinavia and then the rest of Europe.
As of today, 27 investors have participated in the offer funding 52% of the minimum raise.
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