My Food Bag takes important next step
19 October 2016
My Food Bag takes important next
step toward achieving its growth ambitions
Market leading home food delivery provider, My Food Bag (MFB) today announced it had successfully secured investment from Waterman Capital. This partnership will support the company in achieving its ambition to IPO within the next three years to raise further capital and enable Kiwisavers and other New Zealanders to invest alongside the founders and Waterman Capital.
MFB was established to resolve the dilemma, “what are we having for dinner tonight?”, and now delivers more than one million meals to New Zealanders each month. In an environment where people are increasingly time-poor and health conscious, MFB sees further opportunities to grow whilst making a positive change in the lives of New Zealanders. Waterman describes the business as a tremendous New Zealand success story.
Founder & co-CEO Cecilia Robinson says the directors are very pleased to have Waterman Capital as part of the team for the next evolution of My Food Bag’s growth as the business readies itself for an IPO. While the exact financial terms of the transaction have not been disclosed, stakeholders say it is one of the most significant commercial transactions involving a New Zealand business launched less than four years ago.
For the My Food Bag team it’s very much business as usual with Celebrity chef and co-founder Nadia Lim’s role remaining unchanged as the brand’s ambassador and food expert. Cecilia and James Robinson will continue in their roles as co-CEO’s to lead the company through this next phase of growth.
Waterman Capital takes three seats on the board filled by Chris Marshall, Lance Jenkins and Phil Maud. Kevin Roberts continues to chair the company and Theresa Gattung also remains on the board as the company prepares for an IPO. Robinson says: “When we announced our intention to capital raise we were flooded by customers wanting to invest in the company. As we have now set our sights on an IPO we are thrilled to give Kiwis an opportunity to become shareholders”.
Local investor, Waterman Capital was founded in 2004 to provide capital and complementary skills to New Zealand businesses. Waterman is considered the ideal partner to provide the expertise to accelerate My Food Bag’s growth as the company prepares for an IPO, Robinson adds.
Waterman Capital spokesperson Chris Marshall says as a New Zealand investment group, its resources will be applied to extending the My Food Bag success story. “Waterman has a long track record of investing in and adding value to private businesses in New Zealand. These companies are the life blood of the domestic economy. We have been very impressed with the MFB team, what they have created and what they can do going forward is very exciting. As a long term investor, we look forward to working with the MFB team to continue the great work that has already been achieved”.
As the company’s intention is to IPO on the NZX within three years, it has opted to exit Australia; and concentrate its resources on growing its New Zealand business.
In May 2016, the company announced it was seeking expressions of interest from equity investors as it reviewed its capital structure. With strong local and international interest, Robinson says the shareholders are pleased that in Waterman, full company ownership remains in Kiwi hands.
“My Food Bag has rapidly grown to become a household name. This partnership reflects the next step in the maturity of the business and it is our intention that our foodies are going to be able to buy a stake in the business in the future” Robinson notes.