Growth private equity firm TA Associates has completed an investment in 10bis, a B2B and B2C online food ordering marketplace and payment platform in Israel. Financial terms of the transaction have not been disclosed.
In the B2B market in Israel, 10bis operates a leading online food marketplace that allows businesses to provide employee meal benefits programs. The 10bis platform is integrated into a company’s human resources and accounting systems, with employees’ allowances made available through a dedicated 10bis account. Employees can make restaurant purchases via the 10bis mobile app or website, or by using a 10bis card in person at participating restaurants. Individuals also can use the 10bis platform to order personal meals from the comfort of their home. 10bis clients include both leading Israeli companies and large multinational corporations. In 2015, 10bis entered the B2C market with the launch of its direct-to-consumer offering. The rapidly growing platform provides quick and easy access to thousands of restaurant menus, reviews and ratings, while offering discounts, special promotions and other benefits. 10bis processes more than one million orders per month across a network of more than 3,500 restaurants in 20 cities in Israel. Founded in 2000, 10bis is headquartered in Tel Aviv.
“With its highly scalable, easy-to-use, multi-channel technology platform, 10bis has become the leading B2B and B2C food marketplace and payment provider in Israel,” says Naveen A Wadhera, a Managing Director at TA Associates who will join the 10bis Board of Directors. “10bis is the only business of its type serving both the corporate and personal end markets, and is highly regarded by customers and restaurants alike. We are very pleased to partner with the dynamic and talented 10bis management team and to collaborate on the company’s continued profitable growth.”
“We are delighted to welcome TA Associates to our company and to our Board, in what we anticipate will be a significant new chapter in the evolution of 10bis,” says Tomer Fefer, Co-CEO, 10bis. “We will continue to focus on adding new clients and restaurants to our platform, as well as making further inroads into the consumer market. With the assistance of TA, our first institutional investor, we plan to continue our growth, including hiring additional staff, and to increase the breadth of our offering.”
10bis values the Israeli B2B food ordering market at approximately USD1.8 billion, and the B2C ordering market, largely consisting of transactions by phone, at USD2.3 billion. Statista estimates annual restaurant spending in Israel at USD8 billion, and predicts food and drink-related ecommerce will see a robust 19.3% compound annual growth rate from 2015 to 2020.
“While 10bis has become a leader in the B2B food ordering market, a significant portion of the addressable B2B market has yet to be captured,” says Nurit Shaked, Co-CEO, 10bis. “In addition, while Israel has a well-established meal ordering culture, only a small percentage of B2C activity is today conducted online. Given our proven technology and broad and diverse restaurant network, we believe 10bis is well positioned for continued meaningful B2B growth and to capture a significant portion of the burgeoning B2C online ordering market.”
Goldfarb Seligman served as legal counsel and NOAH Advisors provided financial advisory services to 10bis. Primes, Shiloh, Givon, Meir provided legal counsel services to TA Associates.
