Australian supermarket chain Woolworths Group has invested AUD30m ($20.92m) in subscription-based meal kit provider Marley Spoon.
The investment includes a senior secured convertible note of AUD23m ($16.03m) to allow the supermarket chain to participate in its growth.
It also includes the issue of Marley Spoon shares worth AUD7m ($4.88m), resulting in Woolworths taking control of around 9% stake in Marley Spoon.
Marley Spoon CEO Fabian Siegel said: “As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers save time with their weeknight meals.
“We see this partnership delivering important benefits to both Marley Spoon and Woolworths, with both parties incentivised to grow Marley Spoon’s business in Australia.”
Under the terms of the partnership, both companies will work collaboratively to grow the Marley Spoon and Dinnerly brands business in Australia, as well as create value and performance for an initial exclusive five-year term.
The chain also has plans to promote the meal kit service in order to complement its current customer offering online. This will allow the company to gain valuable insights from Marley Spoon’s market experience.
Woolworths Group CEO Brad Banducci said: “This partnership gives Woolworths exposure to the high-growth ready-to-cook meal kits segment and aligns with our ongoing goal of meeting our customers’ needs for healthy and convenient meal solutions.
“The meal kit has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them.”