Supermeal is an online food discovery marketplace where consumers get rewarded with cash-back for every order they place. After each order, the earned cash-back is stored in an e-wallet in their Supermeal account, which can be used against any restaurant on the portal. The result for the consumer is money saved on take-out meals and rewards every time they order.
The company is in the highly lucrative online food delivery space and has identified an interesting gap in the market. The model for all the major competitors in this sector, Deliveroo, Just Eat, Uber Eats etc, is such that they charge high commission fees to restaurants using their service (up to 30%) and offer no incentive for consumers (diners) to use their services.
Supermeal has developed a business model and platform that drastically reduces the fees restaurants pay, to circa 7% and a mandatory 5% in cashback to consumers; whilst also providing them with a subscription-based advertising and marketing platform to promote their brand and not that of the third party delivery platforms. At the same time, Supermeal has cleverly created a cash-back reward scenario for all diners who order through their platform, to encourage repeat business and more sign-ups.
In a dynamic marketplace with mature competition, and with limited resources at its disposal, Supermeal has established and gained trust from its restaurant partners and consumers. The way the online food delivery sector has progressed, restaurants currently feel trapped into giving away a significant part of their revenue to the incumbent delivery platforms, when their brand presence is not protected. Supermeal offers a more lucrative fee structure to its restaurant partners and a bundle of superior e-commerce and analytics features that provide the tools to widen their customer base.
Now, Supermeal is seeking to raise funds to help accelerate its current strong levels of growth in the rapidly growing online food delivery industry. By 2023 the global size of this market is predicted to grow to USD$145.3b, with Supermeal aiming to exploit this significant opportunity.
The company is looking to close off a £1,000,000 seed round at £5,000,000 pre-money valuation. £390,000 has already been raised. The maximum investment target is £1,500,000.
Supermeal has grown quickly since its launch in the UK in Q3 2017, and the management is now prepared for the aggressive expansion to become an attractive acquisition target by established competitors in 3-5 years.
Funds raised will be used to drastically accelerate the company’s marketing efforts and fuel expansion in the West Midlands. The investment target of £1,000,000 will allow the company to reach its Year 1 target milestones – 1200 registered restaurants, 60,000 registered consumers, 30% consumer return rate and on average 40,000 orders processed a month.