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Silicon Valley Bank Provides $15MM Credit Facility to Freshlocal Solutions

May 20, 2021, 07:40 AM
Filed Under: Food Services

Freshlocal Solutions entered into a new $15 million credit financing facility with Silicon Valley Bank.

"This non-dilutive credit facility provides us with important financial and operating flexibility at terms that we believe are favorable to the company," stated Peter van Stolk, Chief Executive Officer of Freshlocal. "These funds will assist us in advancing the development of our eGrocery Management Solution which enables the profitable provision of online grocery services at a time when the global grocery business is experiencing a rapid shift to on-line grocery."

Building upon over 20 years of experience gained while successfully offering online and retail grocery services to its customers in Western Canada, Freshlocal introduced its end-to-end, SaaS-based eGrocery Management Solution (eGMS), FoodX, to the global grocery market in 2018. FoodX brings profitable, efficient, and sustainable online grocery fulfillment capabilities to grocers of all sizes. Given the increased adoption of eGrocery, which has accelerated further as a result of the global pandemic, the FoodX eGMS is ideally positioned to provide a proven eGrocery solution to a global base of potential customers.

Since Freshlocal's introduction of FoodX, important customer wins have been secured including Carrefour Group, a longstanding global leader in the grocery industry that has implemented the FoodX system to serve its customers in Europe. Meridian Farm Market, a Mid-Market grocery retailer in Vancouver, B.C, has also been secured as a FoodX customer, with implementation taking place in late 2021.

"Using its deep experience in online grocery, Freshlocal has developed an important technology solution with the capabilities to drive profitable unit economics for the rapidly expanding global online grocery business," said Caterina Papadakos, Director, Technology Banking at Silicon Valley Bank. "We are pleased to be working with Freshlocal as it connects with new customers in this high-growth market."

In March 2021, Freshlocal secured a revolving loan facility of up to $15.0 million with SVB. The loan facility is secured by a first-priority cash collateral and matures on March 12, 2023. The proceeds from the facility will be used to fund the continued development of Freshlocal's FoodX eGMS platform as well as for expansion and working capital purposes.

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