Just-Eat, the Denmark originated company opertaing online takeaway sites has announced a $64 million (€48 million) C-round investment led by Vitruvian Partners. Former Just-Eat investors Index Partners, Greylock Partners and Redpoint Ventures also took part in the round. We’ve interviewed Just-Eat CEO Klaus Nyengaard on Unfair Advantage as well as covered the company before on ArcticStartup as well. We talked to him again on the new investment the company raised.
Nyengaard raised three different reasons, when we asked why the company went for such a large round. Firstly, Just-Eat sees the online takeaway services continuing to develop in the coming years. Nyengaard stated that in such a high growth industry and environment, “it is always a good idea to have a strong balance sheet”.
Secondly, he stated that having the money in the bank allows them to act fast on opportunities that may come before them. He distinctly names consolidation opportunities in the form of “partnerships and M&A”.
Thirdly, and perhaps most interestingly hinting about some of their future aspirations, Nyengaard says that “we are planning to invest a lot in product and technology. Some of these projects will cost a fair amount of money before revenues kick in and we want to be at the forefront in the technology game”.
As for the geographical reach on their expansion, Nyengaard emphasized that the company will continue to focus on the 13 countries they are already in. According to him these represent the majority of the opportunity outside of USA. He does leave the door open for Latin-America and Asia though, once they feel they are strong enough in Europe.
In an interview to Financial Times, Mike Risman of Vitruvian partners stated, “there are a limited number of later stage ecommerce opportunities but I think that is changing – these assets grow so quickly.” Vitruvian Partners is an independent private equity firm which specialises in middle-market buyouts, growth buyouts and growth capital investments in Europe, while operating a fund of €925 million.