Online food order and delivery service Just Eat has entered the B2B catering market with the acquisition of London-based City Pantry for an initial cash consideration of £16 million. Further cash consideration may be due if City Pantry achieves agreed operational and financial targets over the next three years.
City Pantry basically links caterers and restaurants with corporate customers to provide food for their employees or clients. The business says it currently has orders from 1,000+ corporate customers every month.
The startup had raised roughly £5 million in funding from Octopus Investments, True Capital and the Angel CoFund, among others.
Tim Mills from the Angel CoFund, which initially invested in the company's seed round back in 2016, said: "This deal is credit to founder Stuart Sunderland and his team for recognising a need for quality of choice in the corporate catering market and building a marketplace that has been adopted by restaurants and corporates alike. The team has successfully grown the business in the UK and demonstrated the commercial opportunity in the B2B market, which is what has made it such an attractive investment for Just Eat."
"The acquisition is a great opportunity for the company to continue to scale beyond the UK, with Just Eat opening up new markets for the business. City Pantry has achieved a lot in the past four years and delivered a good return for investors, I look forward to seeing the team reach new heights with Just Eat," Mills added.
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