A tweet published on November 25 reads: Էait. so @Jet charges $10 more for cheese balls and raises a half a billion? well bravo on that oneԮ The witty tweet articulates, albeit cynically, what watchers of Jet have been wondering since the company’s launch in late 2013. The companyӳ ability to disguise its questionable business model changes under the banner of Գtill profitable by 2020Ԡor a completion of a major investment round, is uncanny.
Jet is notorious for being loud, and it doesnӴ disappoint with its most recent investment round, raising a fresh $350 million with Զerbal agreementsԠfor an additional $150 million in the near future. Verbal agreement? Yes, you read right. One cannot help but raise an eyebrow when a company is making verbal agreements, rather than an actual one.
Let’s look at the round in context. In February this year, the company locked in $140 million. At the time, the company was valued at $600 million. Yet the company itself reported that it was worth $1 billion before capital infusion, implicating that the company is now worth an estimated $1.35 billion to its investors. That is one heck of a jump.
So is Jet blustering without strong backing? It is an important question, and a difficult one to answer. If Jet is ԡll-talkԬ there would be worse evidence to show for it. But the recent round of investment shows that investors are still taking a bet, and a large one at that.