It took the founders five years to make money from their business, now they’re about to become millionaires.
On Monday, Mr Price announced that it has put in an offer to buy 100% of Yuppiechef for a whopping R470 million. In cash. As soon as possible.
While it might sound like a dream come true for Yuppiechef, it has been anything but dreamy to get to this point. The two founders, Andrew Smith and Shane Dryden, started their online website on the side, and their first clients were mostly family members and friends.
After the first four months, they only had 200 clients and didn’t have the capital to buy new stock. So, they could only purchase once they had made some money by selling items on their website, reports Business Insider.
Over the years, Yuppiechef has grown into probably the most successful online kitchen appliance tool businesses in the country, and its stakeholders are about to roll in the dough.
In a statement released by Mr Price, it said that Yuppiechef’s online retail operation brings in 70% of its sales, while turnover from its seven physical stores represent 15% and wholesale represents the remaining 15%.
Mr Price has also confirmed in the statement that all Yuppiechef management will continue to run the business.
Image credit: Africa Inc Magazine