Marley Spoon, a German meal kit delivery platform, operating in eight countries, (including the US, Germany, and Australia) announced its plans to acquire Chefgood, a Melbourne-based meal kit provider for AUD 21 million (~USD 14 million). The acquisition is expected to be completed in January 2022 and is funded by an equity placement of AUD 8 million (~USD 5 million) with an unnamed European institutional investor and an extension of AUD 11 million (~USD 7 million) to the company’s existing debt with Runway Growth Capital. The payment is to be made in three tranches ending in May 2023.  

This acquisition builds on the company’s existing portfolio of brands, including Martha Stewart & Marley Spoon, Marley Spoon, and Dinnerly, allowing it to address more customer and meal segments. Chefgood offers 30 or more rotating meals every week based on subscription plans targeting health-conscious customers, which allows Marley Spoon to increase its customer base. 

Chefgood is reported to have a revenue run rate of AUD 26 million (137% YoY) for the three months ending November and generates positive EBITDA and net cash flow. It is also reported to have contribution margins higher than Marley Spoon’s Australian operations.  

Marley Spoon expects improvements in contribution margins in 2022, as revenue and cost efficiencies are recognized across operations, supply chain, marketing, product development, and digital execution.