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Start-up Fund Joensuu invests EUR 100,000 in Fiuge Oy
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Business Joensuu news
Supported by an investment, Fiuge is growing the business of the crowdsourced and community-based delivery service from Finland to international markets.
The crowdsourced delivery service Fiuge Oy, which is based in Kontiolahti, has received an investment of EUR 100,000 from the Startup Development Joensuu – Investment Fund. The fast-growing and soon-to-internalise Fiuge is a new type of community-based delivery service in Finland. A Finnish saying about efficiency that loosely translates as “always take something with you, and bring something back” has been adapted into a functional business that also enables deliveries in a sparsely populated area.
Fiuge is a crowdsourced and community-based delivery service in which anyone can become a carrier and deliver packages or orders. Fiuge provides service for consumers and businesses. Its competitive edge is the speed, affordable cost and improved client service made possible by new technology. Fiuge responds to the constantly growing demand for transportation and tackles the challenges that logistics companies face when making door-to-door deliveries. As a crowdsourced service, it continues the corporate format made popular by operators like Uber and Airbnb.
“We established the company to meet a concrete need. I envisioned a platform that would enable an easy-to-use, affordable and environmentally friendly delivery method. It’s like a modern version of the Finnish saying “always take something with you, and bring something back”, says Jukka Tarkiainen, CEO of Fiuge Oy.
Fiuge Oy was established in 2018 and the service was launched in August 2019. It currently operates in the Helsinki region, Kirkkonummi, Turku, Pori, Lappeenranta, Mikkeli, Savonlinna, Kajaani and Porvoo. The service functions as a mobile application and on the website, and its clients include B2C and B2B companies. Fiuge employs three people on a permanent basis, but it already has over 900 carriers in different cities.
“Our goal is to first expand to all large cities in Finland and then to enter the international market, starting with major European cities. Fiuge is a scalable service,which makes it easy to replicate in different cities and countries. I also believe that crowdsourcing and community-based activities will spread to an increasingly diverse range of service formats and companies,” explains Tarkiainen.
Funding for expansion and client procurement
Startup Development Joensuu will be investing EUR 100,000 in Fiuge. The company has also received funding from Gorilla Capital Ky and the Joensuu-based company Timonen Auto Oy. The Centre for Economic Development, Transport and the Environment has provided funding of approximately EUR 750,000 for service development and launching operations.
“This funding round produced some EUR 250,000, which has been very important to us. The support will allow us to continue our strong customer procurement process and expand our service network around Finland,” continues Tarkiainen. “Our current clients include small and large operators, such as S Group, DB Schenker and Pentik. Although this year has been exceptional and a lot of orders have shifted from bricks and mortar stores to online platforms, we’ve seen huge growth and expansion on the food side. The increase in deliveries from grocery stores and restaurants has been massive,” explains Tarkiainen.
Harri Palviainen, CEO of Business Joensuu, is enthusiastic about North Karelia’s active start-up and growth company field.
“It’s wonderful to see North Karelia producing such innovative world-class services that first expand in Finland and then hopefully continue to international markets. It’s a pleasure to be involved in supporting these companies. Fiuge is the third company that Startup Development Joensuu – Investment Fund has invested in and more announcements can be expected in the future,” says Palviainen.
Palviainen also serves as the Chairman of the Board of Directors of the Startup Development Joensuu – Investment Fund. The fund is managed by Joensuun StartupKehitys Oy, a subsidiary of Business Joensuu. The capital of the fund is EUR 2.5 million.
Photo: Fiuge Oy
Further information:
Jukka Tarkiainen, CEO, Fiuge Oy, jukka.tarkiainen@icarryit.com
tel. +358 40 779 6799
Harri Palviainen, Chief Executive Officer, Business Joensuu Oy harri.palviainen@businessjoensuu.fi tel. +358 500 967 744
Fiuge Oy is a crowdsourced and community-based delivery service that operates in the Helsinki region, Kirkkonummi, Turku, Pori, Lappeenranta, Mikkeli, Savonlinna, Kajaani and Porvoo. The service functions as a mobile application and on the website, and its clients include B2C and B2B companies. The purpose of the service is to make deliveries as flexible, affordable and ecological as possible.
The Start-up Fund Joensuu helps start-up companies to grow, employ people and internationalise. The Fund obtains its capital from the City of Joensuu and private investors. The fund is managed by Joensuun Startup Kehitys Oy, a subsidiary of Business Joensuu. The Fund’s capital is EUR 2.5 million and its typical investment is EUR 50,000 – 200,000. Together with the Business Joensuu’s Business Accelerator and internationalisation services, the Fund supports the domestic and international growth of its target companies. The Fund is an avenue for companies’ second phase funding round. While the Fund is not subject to any field-specific restrictions, its main focus is on companies that specialise in digitalisation, the forest bioeconomy, and materials and innovative technology. Target companies must operate in Joensuu, want to be located in Joensuu or have a connection with the Joensuu region at the level of operative activities.
