The Marley Spoon AG (ASX: MMM) share price is trading nearly 9% higher today after securing a funding deal from two existing investors.
About Marley Spoon AG
Marley Spoon is a cook-at-home food delivery company that delivers fresh ingredients and recipes to your door. The company was founded in Germany in 2014 and completed its IPO on the ASX in mid-2018. Marley Spoon is a global business, with its three regions being Australia, the US and Europe.
What’s Happened?
This morning, Marley Spoon announced that Woolworths Group Ltd (ASX: WOW) and New York-based venture capital firm Union Square Ventures (USV) will extend their current investments in Marley Spoon by ~$4 million each.
This latest investment will be in the form of structured debt transactions and mirrors USV’s and Woolworth’s prior investments earlier this year.
Co-founder and CEO of Marley Spoon, Fabian Siegel, was pleased with the deal, commenting:
“We are happy to see the continued support of key investors and strategic partners in the ongoing growth of Marley Spoon. Consumers continue to discover our meal kit brands that offer a more convenient and sustainable way for weeknight cooking”.
Buy, Hold or Sell?
Investors were similarly pleased with the deal, sending shares up almost 9% this morning. This further investment from Woolworths is a positive sign for Marley Spoon as it suggests that the huge supermarket chain believes the meal-kit industry has potential.
Recently reaching an annualised revenue run-rate of over $200 million, Marley Spoon continues to grow as consumers switch from offline shopping to online meal-kits. However, I don’t know enough about the company or its industry landscape to comment on whether shares are a buy or not at today’s prices.
Instead, I’d rather invest in the growth companies profiled in the free report below.
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Disclosure: At the time of publishing, Cathryn does not have a financial interest in any of the companies mentioned.
