Ordermentum, a hospitality ordering platform, has acquired Foodbomb, a six-year-old wholesale food marketplace, for an undisclosed amount.
Established in 2017 by Paul Tory and Josh Goulburn, Foodbomb secured $4.5 million in a Series A funding round two years ago. Its supporters encompass EVP, Athletic Ventures, Aura Ventures, the investment vehicle of Tony Gandel’s family, Tahmedia, and Platform Advisory Partners.
According to EVP partner Justin Lipman, as part of the M&A deal, his VC firm will acquire a stake in Ordermentum. This acquisition also involved Ordermentum raising $16 million, resulting in a combined business valuation of $100 million.
EVP partner Damon Pezaro had previously shown interest in Ordermentum, supporting the business in a backing investment late last year.
“As investors in Foodbomb, it is exciting to align two exceptional teams, strong technology products and significant customer footprints, and to continue on our collective mission to build one of Australia’s generational software firms in combination with Ordermentum,” Lipman said.
“In our view, the combined business is now well positioned, with a strong balance sheet, to continue growing share as a result of its clear market leadership position within Australia’s hospitality sector.”
This deal is occurring during a period of limited capital availability, and many anticipate that mergers and acquisitions will serve as a vital avenue for startups to expand and achieve growth in an economic slowdown.
Over its six-year history, Foodbomb has demonstrated robust performance, handling orders exceeding $100 million from 13,000 venues. The founders will remain actively involved in the business following its acquisition by Ordermentum. Paul Tory, an experienced figure in wholesale meat sales, revealed that they were approached by Ordermentum founder Adam Theobald last year regarding a possible merger. Ordermentum boasts a database of approximately 40,000 users.
“I have no doubt that the coming together of Ordermentum and Foodbomb will create an unrivalled powerhouse in the wholesale food and beverage industry,” he said.
Josh Goulburn, his Co-Founder, expressed that the merger presents both startups with “the chance to significantly expedite our progress and establish our dominance in the industry.”
For the third consecutive year, Ordermentum has sought funds from the market, securing an additional $16 million. This comes just 10 months after the company raised $6.2 million in November of the previous year.
In 2017, the venture, which has been in operation for nine years, garnered $2.5 million in funding. Following that, in February 2021, they raised $5 million. Later the same year, a secondary market sale took place, where investor RoZetta sold its stake as a significant portion of a $6 million funding round.
Founded in 2014 by Adam Theobold, a Co-Founder of the payments app Hey You, and Andrew Low, the former Managing Director of Toby’s Estate, the initial emphasis was on coffee. However, the B2B software platform later transitioned its focus to encompass the wider food and beverage ordering market.
In the most recent funding round, ASX-listed venture capital firm Touch Ventures joined the capital table, alongside Microequities Asset Management and Aditum Ventures.
Previous supporters, such as SEEK co-founder Matt Rockman, NIB Holdings chair David Gordon, and Perennial Private Ventures Fund, also made additional contributions.