Pires' Sure Valley investment buys into online retail tech firm Buymie

Pires Investments said on Tuesday Sure Valley Ventures (SVV) has made a new investment in Buymie Technologies, as part of a funding round by the company to raise €2.2m (£1.92m).

The AIM-traded firm said Buymie has created a platform that uses artificial intelligence to provide consumers with access to multiple large retailers.

It recently signed a multi-year partnership agreement with Lidl Ireland, where it will provide a personalised online grocery delivery service for the retailer.

The company also allows consumers to order from Tesco Ireland.

Pirex explained that, with the Covid-19 coronavirus pandemic crisis, the online grocery market had come under “significant pressure” to increase capacity, with large grocers acknowledging that their distribution models did not allow for meaningful scaling to meet consumer demand.

Buymie's model did not require vans and warehouses to be able to increase its capacity, and could scale its service in weeks rather than months.

That was achieved by using platform technology and connectivity to connect consumers with a network of hundreds of independent personal shoppers, who could pick and deliver items directly from retail stores to consumers.

It said that, for example, Lidl customers using the Buymie app could choose from Lidl's range of permanently listed products available in store.

With the current demand for online services at unprecedented levels, Buymie had seen a 300% surge in downloads, and in recent weeks many of its delivery slots were being booked six to seven days in advance, with Buymie releasing new slots every day.

To date, Buymie has raised more than €5m from investors, with the latest round including new investors SVV and Act Venture Capital, and long term Buymie investor HAATCH Ventures.

The new funds raised would be used to expand its capacity both in Ireland and internationally.

Pires has an interest of around 13% in SVV, with SVV having a minority investment in Buymie.

SVV is a venture capital fund focused on investing in the software technology sector, with a specific focus on artificial intelligence, the ‘internet of things’, and augmented and virtual reality.

“This is a very exciting investment, given that the company is providing what is fast becoming an essential service as a result of the Covid-19 pandemic,” said chairman Peter Redmond.

“The company has already grown quickly and this is expected to continue.”

At 1521 BST, shares in Pires Investments were down 3.56% at 4.34p.