Algrano, the Swiss coffee start-up launched in 2015, has completed another round of fundraising.
The company has raised CHF4 million (£3.16 million) from its shareholders in order to target new customers.
Having grown from six to 20 employees in 2019, the company is preparing to extend its product offering and provide new technology-driven solutions to meet the customer’s requirements, including retailers looking for containers of traceable coffee and niche specialty roasters seeking micro-lots.
Algrano provides a digital solution that facilitates and simplifies the trade in coffee by championing the long-term relationships between coffee growers and roasters.
Since it was launched, more than 600 growers and 700 roasters have signed up to algrano’s online platform.
“Algrano’s online marketplace for roasters and growers streamlines direct trade, empowering both ends of the value chain,” said the company. “European roasters can contact growers with a single click and purchase coffee lots on offer. They have access to a wide range of quality coffees, a steady supply of seasonal, traceable and exciting coffees.”
In a previous funding round in 2018, algrano raised CHF 2 million to expand its customer base throughout Europe. The company started out in the German and Swiss markets, but now ships orders to more than 20 European countries. The volume of transactions has tripled in the last year. The platform has also solidified partnerships in five main coffee producing-countries: Brazil, Colombia, Ethiopia, Honduras, and Peru. In 2019, over 100 new relationships between roasters and growers were created.
“We found that specialty coffee roasters and larger buyers want to make a difference by building long-term purchasing plans. For growers, that equates to stability. Algrano enables roasters to have relationships with coffee producers by efficiently streamlining communication with origin, thanks to technology,” said co-founder Raphael Studer.
Having expanded its market reach, algrano’s next goal is to provide enhanced business intelligence to growers and build technology to enable them to identify and maintain relationships and become more successful sellers.
The company said research and data analysis is in progress to feed into software development and the creation of new features on the platform. “The next step is to better understand the relationships between growers and roasters and build technology around their needs to make such relationships fully autonomous,” Mr Studer said. “Our goal is to allow growers to make personalized offers to any roaster in Europe.”