Wonder, the digital food hall founded by CEO Marc Lore, has secured a substantial investment of $700 million from its major existing shareholders, including NEA, GV, Accel, Bain Capital Ventures, Forerunner, Alpine, Harmony, and Watar Partners. Additionally, Lore himself is contributing $100 million to the funding round, bringing the total raised capital to $1.5 billion. This latest round of funding builds upon the company’s previous success, having raised $800 million by 2022 and achieved a valuation of nearly $3.5 billion.
In a recent blog post on LinkedIn, Lore outlined Wonder’s strategic allocation of these funds, focusing on three primary areas: expansion, research and development, and improving unit economics.
Firstly, Wonder aims to significantly expand its physical presence, with plans to grow from 11 locations to 35 by the end of the year and ultimately reach 90 units by 2025. Lore emphasized the company’s excitement about bringing Wonder to more communities throughout the Northeast, drawing from his experience as the founder of Jet.com.
Secondly, the company plans to drive culinary innovation through investments in research and development. This includes enhancing cook times, software capabilities, introducing new menu items, partnering with renowned chefs, and collaborating with restaurants.
Additionally, Wonder will invest in proprietary technology to address challenges such as food waste reduction, operational efficiency improvements, and optimizing delivery services to minimize wait times.
New investors joining the funding round include Dragoneer, Jefferies, Red & Blue Ventures, CAZ Investments, Kuvare Insurance, and Fubon Ventures. Lore expressed gratitude for the support of strategic investors, including Amex Ventures and Nestle, which had previously announced a strategic investment.
Over the past year, Wonder has achieved significant milestones, expanding its presence within Walmart stores, acquiring Blue Apron, introducing over 350 menu items across 30 restaurants, and diversifying its offerings with “fast fine” dining options featuring renowned chefs like Marcus Samuelsson and José Andrés, who have joined the Wonder Board.
Lore concluded by reaffirming Wonder’s commitment to its mission of making great food more accessible, expressing confidence in the company’s trajectory towards becoming the leading platform for mealtime solutions.