Kinnevik invests in Verdane portfolio company Mathem to accelerate Swedish food sector online migration

14 Feb, 2019

In a move to further accelerate the offline-to-online migration of food and auxiliary products for Swedish households, Verdane Capital VII (“Verdane”) has agreed to sell part of its stake in MatHem to Kinnevik AB (publ) together with the company’s other shareholders. The SEK 900 million transaction combines 400 million in primary capital and 500 million in secondary shares.

Powered by investments in IT, warehouses, logistics and several acquisitions, MatHem has helmed the Swedish food sector’s offline-to-online migration and grown its revenues by a factor of 100 since Verdane’s initial investment in 2010. Today, the company is Sweden’s leading independent pure-play online grocery retailer, with the largest assortment and fastest delivery time on the market, covering more than half of Swedish households.

“We are the clear Nordic pioneer in online groceries. With both Kinnevik and Verdane onboard, MatHem is now partnered with two of the Nordic region’s foremost investors in e-commerce and digital businesses as we look to further develop our offering and ensure a seamless customer experience to drive growth,” says Tomas Kull, CEO of MatHem.

In 2018, MatHem’s revenues stood at SEK 1.5 billion, with a workforce numbering 1 500 employees.

“Swedish households’ digital shopping habits are at an inflexion point, and we expect to see online grocery shopping in Sweden catch up with similarly digitalised countries over the next ten years. MatHem’s assortment of more than just groceries and ability to deliver straight into your home means it can offer a uniquely seamless shopping experience that will play an important role in making consumers’ lives easier,” says Staffan Mörndal, Partner and Co-Head of Consumer Internet at Verdane.  

“I am excited to announce our investment in MatHem, our third investment in food. This is a sector with huge potential given its significant share of household spend, its non-cyclical nature and attractive purchase patterns in terms of frequency, basket size and zero returns. MatHem has built a strong brand and recently launched an updated platform which places the company in a strong position to continue to capture markets share as the shift to online accelerates within the grocery sector,” comments Georgi Ganev, CEO of Kinnevik.

Closing is conditional on customary regulatory approvals and is expected during the first quarter of 2019.

MatHem is part of Verdane’s e-commerce portfolio together with 14 other companies that include Babyshop, Bemz, Boozt, Eleven, Hylte Jakt & Lantman, MM Sports, Royal Design and Safira. Since 2003, Verdane has invested in over 100 e-commerce and software companies.

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For more information, please contact:

Staffan Mörndal, Partner at Verdane
+46 70 931 52 35
staffan.morndal@verdane.com

Tomas Kull, CEO at MatHem
+46 70 581 12 07

About MatHem

MatHem is Sweden’s largest online grocery and household goods retailer. We have the largest online grocery assortment and fastest delivery time on the market. Our vision goes beyond food, and our promise is to work to help you save time, money, stress, back strain and climate impact with every delivery. Founded in 2006 by Karolin and Tomas Kull, MatHem now delivers one out of two online grocery orders in Sweden, making 1.5 million deliveries every year to over 30 000 customers located across Sweden.

About Verdane

Verdane funds provide flexible growth capital to fast-growing software, consumer internet, energy or high-technology industry businesses, through both majority and minority investments in individual companies and portfolios. Verdane funds act as ambitious, active and long-term owners, helping management teams and companies accelerate and sustain growth by leveraging the Verdane advisory team’s technology capabilities and proven track record in driving business value. Verdane funds’ current portfolio includes Boozt, EasyPark, Freespee, inRiver, MatHem, Mustad, Momox, Polytech and Trivec. Verdane Advisory Group has 38 employees working out of offices in Copenhagen, Helsinki, London, Oslo and Stockholm. For more information, please visit www.verdane.com

About Kinnevik

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to build digital businesses that provide more and better choice. We do this by working in partnership with talented founders and management teams to create, develop and invest in fast growing businesses in developed and emerging markets. We believe in delivering both shareholder and social value by building companies that contribute positively to society. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik’s shares are listed on Nasdaq Stockholm’s list for large cap companies under the ticker codes KINV A and KINV B.