Wonder Aims to Expand Meal Prep Biz After Raising $600 Million
Grubhub and Blue Apron owner Wonder has reportedly raised $600 million in new funding.
The deal brings Wonder nearer to developing what CEO Mark Lore described to Bloomberg News Tuesday (May 6) as a “super app for mealtime.”
The financing also brings the company’s valuation to more than $7 billion, the report added, citing a source familiar with the matter.
Bloomberg describes Lore as a “serial entrepreneur” who sold an earlier startup, Jet.com, to Walmart Inc. for more than $3 billion in 2016. He told the news outlet he wants to take Wonder public rather than looking for an acquisition.
Wonder prepares its own food and sells it for pickup and delivery under a variety of brands, operating via an app and at some storefront locations. It raised $700 million in a funding round last March.
The company purchased meal kit service Blue Apron in 2023, purchasing Grubhub from owner Just Eat Takeaway last year, paying $650 million for a company Just Eat had initially purchased for more than $7 billion.
More recently, Wonder acquired Tastemade, a media company that creates video content and original programming centered around food, travel, home and design.
“With Tastemade’s world-class storytelling, we’re unlocking fresh opportunities for brand partners and reimagining the future of food and content,” Wonder wrote on LinkedIn.
Purchases like these, PYMNTS wrote last year, are all part of an effort by Wonder to turn itself into a one-stop provider for food.
In a with PYMNTS last winter, Wonder Chief Growth and Marketing Officer Daniel Shlossman said the company’s collaboration with Walmart helps it connect restaurant ordering opportunities to consumers’ grocery and retail shopping habits.
“We do expect customers to place orders maybe when they are heading into the Walmart, and the food is going to be right there ready for them for pickup when they’re leaving,” he said. “We also see people that are maybe in the middle of running errands, and they’ve just made their Walmart run, and they can stop off and have a bite before they head to their next destination.”
Now, Lore told Bloomberg that his company has more than $2 billion in revenue, Grubhub included. Wonder plans to reinvest the firm’s profits to bolster its growth, he said, using the new capital to grow beyond the New York metro area and opening new locations in Philadelphia and Washington.
He added that he started the company because consumers are seeking maximum convenience when they purchase food.
“And they’re willing to pay for it,” Lore said
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