Food St is raising $750K to be the Uber of home cooks while Marley Spoon preps $70m listing
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Marley Spoon and Food St are home cooking plays at two opposites ends of the fund-raising spectrum.
Next week home dinner food delivery service Marley Spoon is due to list on the ASX after raising $70 million.
Meanwhile start-up Food Street — a marketplace for home cooks — is raising 1 per cent of that amount via an equity crowd funding effort.
Sydney-based Food St is like an Uber for home cooks. It’s a platform that lets more than 900 home cooks sell meals to time-poor households across the city, with Food St clipping the ticket on orders.
Food St is launching expressions of interest for a $750,000 equity crowdfunding raise on the Birchal platform this week, hoping to beef up its marketing activities and create an app to make it easier for users to place food orders with chefs who may be literally next door to them.
Founder Lorraine Gnanadickam says her business is about “community cooking and buying, and people love our service”. She hopes many users and advocates will buy a piece of the business for a minimum $100 investment.
The goal is to eventually expand beyond New South Wales, across Australia and even globally.
“We have an idea of where we want to go next — it’s just a question of how quickly we can move,” Ms Gnanadickam told Stockhead.
Meanwhile, recipe and meal delivery service Marley Spoon is gearing up for its official admission to the ASX on next week.
The company’s $70 million initial public offer involved issuing 49 million shares at $1.42 each.
Marley Spoon chief executive Fabian Siegel is keeping tight lipped on expectations ahead of the company’s listing. But in the prospectus he told investors the business was ready to cash in on the relatively new cohort of Australian diners who are happy to log on in order to get fed.
“Marley Spoon is well-positioned to benefit as more consumers become comfortable purchasing groceries in this way,” he said.
The business has so far delivered more than 14.5 million meals to customers since launch in 2014.
Whether they eat at home or head out, one recent trend in consumer spending seems to be that customers are more than happy to let others prepare food for them.
Marley Spoon and Food St might be at home dining plays, but recent consumer spending stats from the ABS also shows spending at restaurants and cafes is one of the few retail sectors to see a boost.
Gnanadickam says the growth of her business in just one year, from zero home cooks to more than 900, shows there is plenty of opportunity in the dinner space given many families with working parents simply no longer have the time to prepare food, or an easy solution beyond takeaway.
“It’s as if a long time ago, that [dinner preparation] was the mum’s role. We’ve abolished that role and yet haven’t replaced it.”