Food delivery companies raise record amounts
The Digital Commerce M&A sector registered 1,037 deals in the first half of 2021 – a 25 per cent increase from 787 deals in the same period last year – according to the latest market report from Hampleton Partners, the international technology mergers and acquisitions advisors.
M&A and fundraising activity across all segments of the Digital Commerce space has skyrocketed, propelled by the great shift online and continued interest from financial sponsors.
Young “e-food” companies founded in response to or spurred by Covid-19 and lockdowns have benefited from megarounds, fundraising of $100 million or more, and monumental seed and Series A funding rounds. Overall, in the past 18 months the sector has seen over $10 billion raised across segments such as “Fresh food, meal kits & boxes”, “Online supermarkets”, “Delivery services” and other tangentially related spaces, such as software for food delivery firms. Most recently, in July, German technology company Choco, which provides an ordering platform to connect restaurants and suppliers, raised $100m in Series B funding to build a sustainable food supply chain.
Meanwhile, Asia’s appetite for food delivery is also growing: in July, Licious, a Bangalore-based startup that sells fresh meat and seafood online, raised $192 million to expand its footprint beyond the South Asian market.
Ralph Hübner continued: “Looking forward, we anticipate that the ‘e-food’ and ‘quick delivery’ hype will compel more market stakeholders and classic retail brands to follow in the footsteps of Dr. Oetker, Beiersdorf, Henkel, Rewe or Nestlé and invest time and money into D2C brands and operations. Ultimately, D2C software and service providers will continue to flourish, raising large amounts and realising possible M&A exits further down the line.”
Source: Hampleton Partners