Foodbomb, a six-year-old wholesale meals market, has been acquired by hospitality ordering platform Ordermentum for an undisclosed sum.
Based in 2017 by Paul Tory and Josh Goulburn, Foodbomb raised $4.5 million in a Sequence A two years in the past. Its backers embody EVP, Athletic Ventures, Aura Ventures, Tony Gandel’s household funding car, Tahmedia, and Platform Advisory Companions.
EVP companion Justin Lipman stated the M&A deal will see his VC agency take a stake in Ordermentum, which additionally raised $16 million as a part of the acquisition, which supplies the mixed enterprise a $100 million valuation.
The VC already had an inkling into Ordermentum with EVP companion Damon Pezaro backing the enterprise late final 12 months.
“As buyers in Foodbomb, it’s thrilling to align two distinctive groups, robust know-how merchandise and vital buyer footprints, and to proceed on our collective mission to construct one among Australia’s generational software program companies together with Ordermentum,” Lipman stated.
“In our view, the mixed enterprise is now nicely positioned, with a powerful stability sheet, to proceed rising share because of its clear market management place inside Australia’s hospitality sector.”
The deal comes at a time when capital is tight and lots of are predicting that mergers and acquisitions will probably be a key pathway for startups to scale and ship progress in a slowing financial system.
Foodbomb has proven robust traction over its six years, processing greater than $100 million in orders from 13,000 venues. The founders will proceed within the enterprise beneath the corporate’s new homeowners, with Tory, a veteran of wholesale meat gross sales, saying they had been approached by Odermentum founder Adam Theobald final 12 months a couple of potential merger. Ordermentum has round 40,000 customers on its database.
“I’ve little question that the approaching collectively of Ordermentum and Foodbomb will create an unrivalled powerhouse within the wholesale meals and beverage business,” he stated.
His cofounder Josh Goulburn stated the merger provides each startups “the chance to essentially speed up and solidify our place as essentially the most dominant power within the area”.
It’s the third years in a row Ordermentum has tapped the marketplace for extra cash, pulling in one other $16 million, simply 10 months after it raised $6.2 million in November final 12 months.
The nine-year-old enterprise beforehand raised $2.5 million in 2017 after which $5 million in February 2021, earlier than a secondary market sale later that 12 months noticed investor RoZetta promote its stake as the majority of a $6 million spherical.
Launched in 2014 by Theobold, cofounder of funds app Hey You, and former Toby’s Property MD Andrew Low, the preliminary focus was on espresso earlier than the B2B software program platform shifted into the broader meals and beverage ordering market.
The most recent capital injection noticed ASX-listed VC Contact Ventures be a part of the cap desk together with Microequities Asset Administration and Aditum Ventures.
Present backers, together with SEEK cofounder Matt Rockman, NIB Holdings chair David Gordon and Perennial Non-public Ventures Fund additionally chipped in.