One of many startup sector’s largest merger and acquisition offers will go forward with rival restaurant ordering apps me&u and Mr Yum getting collectively.
The Sydney and Melbourne startups have raised a mixed $165 million in enterprise capital, having each been based in 2018, however the deal received’t ship an exit simply but for traders, continuing as an all-stock merger.
The deal has but be authorised by shareholders however seems to have widespread assist from the superstar cap tables on each side.
The mixed entity could have Mr Yum cofounder Kim Teo as CEO, with me&u chair Damian Smith operating the merged board and me&u founder Stevan Premutico as a non-executive director. Whereas the break up was not disclosed, it’s believed to be a wedding of near-equals.
Startup Day by day first confirmed merger talks had been underway in Could, two months after Mr Yum minimize 40 roles, its second spherical of job cuts in seven months. Teo mentioned on the time that her startup was targeted on getting “to profitability with our present money reserves”.
Mr Yum raised greater than $100 million in its brief life, together with $89 million in a Sequence A led by US VC large Tiger World in November 2021. Its cap desk additionally consists of Steve Baxter’s TEN13, Airtree Ventures, Skip Capital, the household fund of Atlassian co-founder Scott Farquhar and his spouse Kim Jackson, in addition to Tennis Australia’s Wildcard Ventures, Broadsheet founder Nick Shelton, Australian NBA star Patty Mills, musician Rüfüs Du Sol, and Kogan founder Ruslan Kogan.
Alongside the best way it additionally acquired Melbourne startup MyGuestlist and it subsidiary CRM platform Sprout final 12 months.
Me&u raised $30 million in December 2022Â in a spherical led by Acorn Capital and has banked $66 million in complete. Its backers embrace chef Neil Perry, City Purveyor Group founder John Szangolies, and former Fb, Uber, MYOB and Google execs William Easton, Mike Abbott, Tim Reed, and Jason Pellegrino.
It has dominated the Australian pub ordering market, thanks in no small half to traders Justin Hemmes, CEO of the Merivale, with the app rolled out throughout his inns empire.
Me&u has 70% market share of the nation’s prime pub teams in comparison with 20% for Mr Yum and 10% for others.
The merged enterprise will provide 6,000 venues collectively, producing round $39 million yearly in income from processing greater than A$2 billion in orders in Australia, New Zealand, UK and USA. It’s additionally on monitor to succeed in profitability in 2024 with vital money reserves. Australia has the very best penetration of QR code desk ordering globally.
Kim Teo mentioned the rival companies “all the time had a deep respect for one another” as they competed for market share and can now look to develop their companies.
“4 forms of prospects work together with our merchandise right now – the venue operator, friends, workers and head workplace groups,” she mentioned.
“Over the following few months, our mixed firm will launch a variety of new merchandise/options targeted on elevating the interactions between workers and friends, in addition to advertising and marketing instruments to assist enhance foot visitors and income.”
Stevan Premutico mentioned it was “a uncommon alternative to see two sturdy Australian corporations coming collectively to tackle the world”.
Acorn Capital CEO Robert Routley referred to as the merger “an audacious transfer” by the founders and shareholders of each corporations.
“The mixed enterprise is an much more formidable power in spearheading the worldwide transformation of technology-driven hospitality companies. Acorn appears ahead to persevering with to assist this outstanding Australian success story,” he mentioned.
This hospitality tech merger comes simply days after kitchen provides ordering enterprise Ordermentum snapped up produce market Foodbomb for an undisclosed sum amid ongoing cost-of-living pressures in a sector closely reliant on discretionary spending.