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My Food Bag gets boost from Waterman Capital Updated

Wednesday 19 Oct 2016 12:05 p.m.

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My Food Bag Holdings, New Zealand's biggest home delivery meal kit service, has a new major investor - and it plans to become a publicly listed company focused on its home market.

In May this year, the Auckland-based company said it was seeking expressions of interest from equity investors and had appointed PricewaterhouseCoopers to manage approaches.

At a press conference on Wednesday, it said the process had "garnered a huge amount of interest" and Waterman Capital would invest as it sets its sights on an initial public offering within the next three years and list on the NZX.

The company declined to provide further details on Waterman's investment but said it will get three seats on the board.

My Food Bag was founded in 2013 by Cecilia Robinson, who is the company's chief executive alongside her husband James Robinson, and is fronted by celebrity chef Nadia Lim and backed by former Telecom chief executive Theresa Gattung and Saatchi & Saatchi chairman Kevin Roberts.

In May, My Food Bag estimated it was New Zealand's third-largest food retailer behind the country's two dominant supermarket chains, Foodstuffs and Countdown.

It expected its revenue to rise to more than $135 million in the year ending March 31, 2017, and accelerate to more than $200m in 2018.

In June, it launched Bargain Box, a cheaper option targeted at families. The business has also expanded its offerings to include lunchbox, dinner party and fruit as extras.

The service has more than 35,000 active customers across New Zealand and Australia but under changes announced today it will withdraw from the Australian market to focus on NZ.

Currently it makes 14,000 weekly deliveries, with a 120 percent annual growth rate.

Last September, gourmet dinner delivery service WOOP (World On Our Plate), raised $800,000 on equity crowdfunding platform Snowball Effect in exchange for 42 percent of the company.

NZN

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