Operations

Wonder raises $700M to fuel growth

Photo: Wonder

March 19, 2024

Wonder CEO and founder Marc Lore announced Tuesday the 11-unit digital food hall has raised $700 million from all major existing shareholders, including NEA, GV, Accel, Bain Capital Ventures, Forerunner, Alpine and Harmony and Watar Partners.

Lore is also personally investing $100 million, which brings the total funds raised to $1.5 billion. The company had raised $800 million by 2022 and was valued at nearly $3.5 billion.

"We plan to use this latest raise to continue driving these efforts across three distinct levers: expansion, research and development, and driving unit economics," Lorewrote in a blog published on LinkedIn.

Lore's first step will be to grow from 11 to 35 physical locations by year's end and finish 2025 with 90 units.

"We're excited to bring Wonder to more communities throughout the Northeast," said the founder of Jet.com.

Secondly, the company will drive culinary innovation by investing in research and development, including faster cook times, software enhancements, menu items, chefs and restaurant partnerships.

"Customers love features like multi-restaurant ordering and we'll have many exciting new products and partnerships to talk about soon," Lore said.

Lastly, the chain will invest in proprietary technology to cut food waste, improve throughput and consistency and create a delivery network to slash wait times.

New investors to the funding round included Dragoneer, Jefferies, Red & Blue Ventures, CAZ Investments, Kuvare Insurance and Fubon Ventures.

"We're also grateful for our strategic investors in this fundraiser, including existing investor Amex Ventures, and Nestle's previously announced strategic investment," Lore said.

Over the past 12 months, the company has opened within Walmarts, acquired Blue Apron, developed over 350 menu items across 30 restaurants and expanded its assortment of "fast fine" restaurants with chefs such as Marcus Samuelsson and José Andrés, who joined the Wonder Board.

"We are clearly on our way to building the super app for mealtime and fulfilling our mission of making great food more accessible," Lore said.