Waterman Capital takes slice of My Food Bag

The company has revealed it is working toward an IPO within the next three years.

My Food Bag has revealed it has a new investor in private equity firm Waterman Capital and is working toward an IPO within the next three years.

The company also says it will be ceasing operations in Australia, to concentrate on the New Zealand market.

“This partnership sets the foundation for My Food Bag to become a great New Zealand company,” co-chief executive Cecilia Robinson says, without disclosing financial details of Waterman's investment.

In May, the company sought expressions of interest from equity investors as it renewed its capital structure.

Ms Robinson says since then the company has had a huge expression of interest.

Waterman will take three seats on the board, with Kevin Roberts and Theresa Gattung remaining on the board.

Waterman Capital was established in 2004 and invests in a variety of New Zealand companies including IT firm Healthlink, insurer Partners Life and healthcare company Healthcare Holdings.

Previous investments include education provider Academic Colleges Group and natural health products company ManukaHealth.

My Food Bag had hinted earlier this week it was to announce “significant news” at today’s press conference.

My Food Bag was launched in 2013 by entrepreneur Cecilia Robinson, chef Nadia Lim and prominent businesswoman Theresa Gattung, delivering customers food bags of ingredients and recipes for a week’s worth of dinners.

It launched a cheaper alternative, Bargain Box, in June.

The company says it has 50,000 active customers in Australasia and expects revenue of at least $135 million in 2017.

Last March, NBR reported the company had 15,000 New Zealand customers and $40 million annual revenue, as then Saatchi & Saatchi Worldwide executive chairman Kevin Roberts came on board as an investor and chairman.

The company courted controversy last month after it ditched its sponsorship of the Chiefs, and then came under fire from union officials for using Talley’s peas.

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