Wonder Group Bags $350 Million
Bain Capital Led Round
Wonder Group snagged $350 million last month in a Bain Capital led funding round. In total, the food-delivery start-up has raised $900 million, translating to a $3.5 billion valuation.
The cash infusion comes amid a general contraction in the availability of venture capital. Rising interest rates and the prospect of a recession have shrunk investors’ appetite for risk. As evidenced in the tech sector’s broad sell-off, enthusiasm has diminished in terms of making bets on companies that have yet to earn a profit.
Food Truck Fleet
Marc Lore, who has a successful track record of selling start-ups such as Jet.com and Quidsi Inc., leads Wonder Group. His companies also have a profitable history.
With Wonder he is aiming to offer meals created from chef-based recipes that are prepared in food trucks. The model supports sales of meals directly from the trucks as well as delivery options. Currently the service is only offered in New Jersey. In some locations, 25% of its revenue comes from Envoy by Wonder, which allows users to order food from local restaurants using Wonder’s app.
National Expansion by 2035
The fresh funding will help support Wonder’s expansion plans. In the future, delivery options will include meal-preparation kits. Lore has said his goal is to expand nationally by 2035.
Past funding was used to refine and adapt recipes for small-space preparation. The near-term focus will be on making the cooking process more efficient. To this end, the company is evaluating kitchen layout and software that can help chefs prepare meals in the quickest way possible. Ultimately the company’s stated goal is to create “a new kind of home dining experience.” Bon appétit!
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