Wonder raises $650 million as Marc Lore targets IPO next year

Wonder has raised more than $650 million at a $9 billion valuation, giving Marc Lore’s food delivery company fresh capital as it prepares for a possible IPO. Lore told Fortune that Wonder expects to be ready to go public early next year, a test of investor demand for a costly expansion plan in food delivery and automated kitchens.

The Series D round included existing backers Accel, Google Ventures and NEA, according to Fortune. New investors included AllianceBernstein, ARK Invest and Kayne Anderson, with Goldman Sachs, Jefferies and J.P. Morgan acting as placement agents. Fortune reported that Wonder has now raised about $3 billion since it was founded in 2018.

Wonder operates 135 food halls in 10 East Coast states, according to the company information cited by Fortune. Each site can run as many as 30 restaurant concepts from one kitchen, including licensed brands such as Bobby Flay Steak and Tejas Barbeque. Customers can place a single app order spanning multiple concepts, while Wonder cooks the food and handles delivery.

The company has also expanded through acquisitions. Fortune reported that Wonder owns Grubhub, acquired early last year for $650 million including $500 million in assumed debt, and Blue Apron, bought in 2023 for $103 million.

Lore told Fortune that Wonder’s goal is to make higher-quality food more available in places where those meals are limited or too expensive. The company’s operations remain concentrated in the Northeast, but Fortune reported that the new funding will support further growth, including a planned move into Texas next year, as well as spending on robotics and artificial intelligence.

Wonder has added automation assets as part of that plan. It paid $186.4 million last November for Sweetgreen’s Spyce unit and its Infinite Kitchen system, according to Restaurant Dive and Fortune. The company also closed on a deal for Mighty Quinn’s BBQ this week, according to Nation’s Restaurant News, following its earlier purchase of Blue Ribbon Fried Chicken.

The growth push comes with heavy projected losses. The Information, citing investor materials it reviewed, reported that Wonder expects to burn nearly $2.7 billion in cash through 2029 and lose about $618 million on an adjusted EBITDA basis this year, before turning cash-flow positive in 2030.

Lore disputed the way those figures have been presented. He told Fortune that upfront spending on robotics and a broad ingredient system weighs on near-term results, while saying same-service-area sales are rising about 20% year over year and food costs are performing better than expected.

The financing also includes an IPO ratchet, Fortune reported, after The Information first reported the provision. Under that term, investors would receive additional shares if Wonder goes public at a price below 1.5 times the latest round’s share price. The Information also reported that the round came in below Wonder’s earlier $11 billion valuation target. Lore acknowledged the protection to Fortune and said it was lower, on a relative basis, than what Wonder had offered in past rounds.

Wonder also faces criticism from some consumers. Reddit users in New York, Philadelphia and Washington, D.C., have accused the company of presenting itself in ways they consider misleading, including claims that it operates like a ghost kitchen, inflates reviews and mishandles gluten-free labeling.

Lore rejected those descriptions in comments to Fortune. He said he has celiac disease and pushed back against the ghost-kitchen label, saying Wonder cooks meals to order and does not rely on reheating or microwaves.

Lore also told Fortune he invested personally in the latest round, though he declined to confirm The Information’s report that the amount was $200 million. Fortune reported that he has put money into every Wonder financing round so far.

Wonder’s longer-term plan includes MEL, an AI platform Lore is developing to track blood biomarkers and body composition, then plan and order meals, according to Fortune. Lore said he has used the system himself. The public-market question will be whether investors are willing to fund that broader vision while Wonder builds toward profitability.

This story draws on original reporting from Fortune.