Marley Spoon shares up on $4m Woolies loan

Marley Spoon shares are on the boil as supermarket giant Woolworths forks out a $4 million loan to the global meal kit provider in another show of faith.

The ASX-listed company on Thursday announced it had approved an $8 million funding deal, with Woolworths and US-based venture capital firm Union Square Ventures chipping in $4 million apiece.

The news sent the Berlin-headquartered company’s ASX-listed shares soaring by as much as 8.9 per cent on Thursday.

Marley Spoon, which operates in the United States, Australia and four European countries, entered into a $30 million strategic partnership with Woolworths in June.

The respective investment structures essentially mirror USV and Woolworths’ agreements from earlier this year.

“We are happy to see the continued support of key investors and strategic partners in the ongoing growth of Marley Spoon,” chief executive Fabian Siegel said.

“Over the past few years the Marley Spoon team has built a $A200,000,000 run-rate revenue business that continues to grow fast as consumers continue to switch from offline shopping to online meal-kits.

“We believe we are just witnessing the beginning of consumer adoption in our industry.”

The $8 million cash injection follows Marley Spoon last month posting a widened half-year loss of 12 per cent to 21.6 million euros ($A35.02 million) despite revenue rising 55 per cent to 61.38 million euros ($A99.52 million).

The company, founded in 2014 and listed on the ASX last year, had more than 190,000 active global customers as of March 31 across both Marley Spoon and Dinnerly brands.

AAP

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