Offer withdrawn Appetise (Holdings) Ltd

Appetise Corporate Video

Fixed Priced IPOType of Offer
22 Sep 17Offer Open
10 Nov 17Pay By
$4.8-6.8 millionSize of Offer
$2,000Minimum Bid
Beer & CoLead Manager


Appetise is a UK-based online and mobile takeaway food marketplace with ~90,000 registered customers and 400 restaurant partners on its platform. The business has a national footprint, is scalable with low capex, and derives its revenue from commissions charged to restaurants. Appetise is a pure play marketplace between consumers and restaurants. The company does not handle delivery or logistics or manage a fleet of delivery drivers, and has an operating model is similar to that of MenuLog in Australia.

The UK market for takeaway exceeds $10 billion annually, with Just Eat dominating market share. JustEat has taken advantage of low competition and offers a higher cost proposition for restaurants and customers as compared to Appetise, which has created an opportunity for a nimble competitor.

Appetise plans to win market share from the accelerating migration of telephone ordering to online, and aims to grow market share via:

  • Eliminating restaurant joining fee of up to £699 charged by the competition
  • Charging restaurants up to a 10% commission on orders (compared to up to 14% charged by the competition)
  • Providing consumers with a loyalty scheme
  • Not charging 50 pence card fee charged to consumers by competition
  • Being the only platform to provide restaurant hygiene ratings on its platform

The company had a gross order volume of ~$500,000 and net revenue of ~$50,000 in in the year to 31 March 2017.

Offer Overview

Appetise (Holdings) Limited is seeking to raise between $4.8 million and $6.8 million via its IPO, with a $9 million pre-money market cap, resulting in an expected capitalisation of $15.8 million at the maximum subscription.  The purpose of the offer is to expand the sales team, undertake marketing campaigns and invest in further development of platform and systems, as well as fund the overhead and the working capital.

Further, the Company intends that all Shareholders of the Company registered on a record date falling approximately 3 months after the date Appetise is admitted to the Official List should receive 1 loyalty Option for every 2 Shares. The Options will be quoted on ASX and have an exercise price of $0.22 each and an expiry date two years after issue.  

The Company has secured institutional cornerstone investor support for the IPO.

All of the shares other than the shares issued in the IPO will be escrowed for 24 months.

The Market

The global food delivery market was estimated to be $124 billion in November 2016 with the UK takeaway market being a significant proportion of that, and the largest in Europe, at $10.7 billion and expected to grow to $12.8 billion by 2020.  Britons spend more on takeaway food than anyone else in Europe with the average spend being $233 per person per year.  

Further, currently over 50% of all orders from takeaway and delivery restaurants in the UK are still placed by telephone. The rise of digital technology is reshaping the market as consumers, accustomed to shopping online for a wide range of goods and services, expect the same convenience when it comes to ordering dinner.   

Globally, the sector is undergoing aggressive consolidation via M&A at substantial valuations (15+ transactions over the past two years), eg:

  • Just Eat’s proposed acquisition of Hungry House in the UK (subject to regulatory approval)
  • Grubhub acquired Eat24 in August 2017
  • Just Eat acquired Menulog in Australia in May 2015
  • In an adjacent vertical of delivery logistics software, GetSwift (ASX:GSW) IPOed in December 2016

Revenue Model and Growth Strategy

Takeaway and delivery restaurants contract with Appetise to join its platform and have their menus made accessible to consumers. Consumers access Appetise's website and apps, which allow them to view takeaway and delivery restaurants servicing their area and offering a range of cuisines. The company derives its revenue from commissions charged to restaurants on the value of orders placed through Appetise’s platform, which are currently typically set at 10% of the value of the order. The restaurants take responsibility for preparing and delivering the food. Appetise has no involvement, and does not incur costs, in the logistics of food preparation or delivery.  

Appetise believes that its asset-light model affords it the potential for scalability.  

Growth in the number of restaurants on the platform is a key factor in the company's strategy. Appetise intends to use the proceeds of the IPO to grow its sales team so as to increase the number of restaurants available on its platform in clusters, city by city throughout the UK. The Company believes that the fact that it does not charge restaurants fees to enrol in the platform, and the fact that its  commission rates are lower than the key competitor’s are key to Appetise’s ability to sign up additional restaurant partners.

Appetise intends to grow its consumer base by conducting aggressive marketing and public relations campaigns educating the consumer about the options available to it, and the benefits of using the platform (including there being no fee, the loyalty scheme, and being able to make an informed choice through being able to see restaurants hygiene ratings)


The Company has experienced, proven and driven Board and management, which include Keith Edelman, a former CEO of soccer club Arsenal Holdings, Simon Smith, a former CEO of eBay Australia, and Konstantine Karampatsos, formerly Commercial Director of, Head of e-commerce at (acquired by Rakuten, one of the world’s largest retailers and e-tailers), and Amazon marketplace specialist.

Important Information

As set out in Section 8 of the Replacement Prospectus, Appetise (Holdings) Limited is subject to a range of risks, including but not limited to technology, conducting business in a competitive market, consumer and restaurant acceptance and reputation.


Section 734(6) disclosure: The issuer of the securities is Appetise (Holdings) Limited ACN 619 564 699. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).‚Äč


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