Marc Lore’s New York City-based startup nearly doubles equity investment
Wonder, the New York City-based food delivery platform, has completed a $700 million funding round, nearly doubling its equity investment, the company said Tuesday.
Wonder was created in 2018, initially featuring a fleet of trucks that delivered made-to-order meals directly to customers’ homes. At the beginning of 2023, it shifted its model to brick-and-mortar locations with delivery.
The company operated 10 locations in New York City and New Jersey, and delivered meals by such chefs as Bobby Flay and Michael Symon. In February, it opened its eleventh unit inside a Walmart in Quakertown, Penn., as part of a pilot program aimed at testing where the concept could locate.
The 750-square-foot Walmart space features eight different cuisines, or less than one-third of a typical New York City location. Wonder plans two more Walmart locations in Teterboro, N.J.., and Ledgewood, N.J., this year.
Wonder founder Marc Lore is a former Walmart executive who founded such brands as diaper.com and jet.com.
All of Wonder's "major" existing shareholders participated in the latest funding round, including NEA, GV, Accel, Bain Capital Ventures, Forerunner, Alpine, and Harmony, as well as further investment from Watar Partners. Lore also invested $100 million, while new investors include Dragoneer, Jefferies, Red & Blue Ventures, CAZ Investments, Kuvare Insurance, and Fubon Ventures. Amex Ventures and Nestlé also participated as strategic investors.
“We plan to use this latest raise to continue driving these efforts across three distinct levers: expansion, research and development, and driving unit economics,” Lore said in a LinkedIn post on the deal.
Wonder plans to have 35 total locations by the end of 2024 and 90 by the end of 2025, all in the Northeast.
“Second, we will continue driving culinary innovation by aggressively investing in research and development, including faster cook times, software enhancements, new menu items, new chefs and iconic restaurant partnerships,” Lore said. “Customers love features like multi-restaurant ordering and we’ll have many exciting new products and partnerships to talk about soon.”
Lore also said Wonder will continue to invest in proprietary technology to drive operational efficiencies across its system.
“We’ve learned so much over the past year, and this round of capital is a show of confidence in what our team is creating: the super app of mealtime,” Lore said.
Contact Ron Ruggless at [email protected]
Follow him on X/Twitter: @RonRuggless
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