Terms remain undisclosed, although I understand from a source close to the company that it was an “8-digit all stock” deal and sees investors, which include Lukasz Gadowski, Target Global, Point 9 and Northzone, pick up shares in Caterwings’ parent company B2B Food Group.
Noteworthy, Rocket Internet was also an investor in Lemoncat, despite founding Caterwings, as it is prone to do.
Meanwhile, the two combined companies are disclosing the completion of another financing round to bolster the newly rolled up venture. This sees a further €5 million invested into B2B Food Group, bringing total investment to €13 million in the last nine months.
I’m told Lemoncat’s legacy investors participated, signaling that they remain bullish on the corporate catering market, essentially doubling down on their investment in the space rather than seeking an exit.
“The market in Europe is clearly there and the question is not whether it will be digitalized, but only when,” says Lemoncat founder and CEO Doreen Huber. “Hence I am thrilled to be part of the further expansion of the international market leadership of the B2B Food Group.”
The merger of the two companies also comes shortly after takeout food behemoth Just Eat acquired City Pantry, a rival to Caterwings in the U.K., for £16 million.
“It proves to us that also the big consumer food platforms see how great the B2B market is,” Huber tells me. “The baskets are much higher and therefore a business customer is more attractive.”