Target Information

We are pleased to announce our investment in Yume Foods, a pioneering software technology platform that assists suppliers in managing surplus food efficiently. This platform enables these suppliers to sell or donate excess inventory to buyers and charitable organizations, enhancing their financial returns while simultaneously reducing food waste.

Yume Foods is committed to optimizing the food supply chain and reducing the ecological footprint generated by surplus food. This investment positions Yume as a leader in facilitating sustainable practices within the food industry, addressing both economic and environmental concerns.

Industry Overview in Australia

The issue of food waste is increasingly recognized as both a moral and financial challenge. According to the United Nations Sustainable Development Goal 12, a significant amount of food—approximately 30%—is lost or wasted globally, with 13.3% lost during processing and distribution and an additional 17% wasted at the consumer level. This inefficiency underscores the necessity for innovative solutions that bridge the gap between food production and consumer access.

In Australia, the commercial sector is responsible for 42% of the nation’s total food waste, which contributes approximately 3% to annual greenhouse gas emissions. The economic cost of this waste amounts to around AUD 36.6 billion yearly, resulting in 7.6 million tonnes of food being discarded throughout the supply and consumption chain. Moreover, a shocking 3.2 million tonnes of this waste occurs even before products reach supermarket shelves.

Addressing this critical issue, the Australian government has implemented initiatives such as the National Food Waste Strategy, which includes the establishment of the Stop Food Waste consortium and commitments from major industry players like Woolworths and Coles. These actions highlight a growing determination to leverage technology and improve practices aimed at minimizing surplus food disposal.

Organizations are increasingly recognizing the value of addressing food waste, both for profitability and social impact. Major companies, such as Unilever and Kellogg's, are setting ambitious targets to halve food waste by 2025 and 2030, respectively, showcasing a shift towards more sustainable business models.

Rationale Behind the Deal

Our decision to invest in Yume Foods stems from the platform's potential to revolutionize the management of surplus food in a highly inefficient marketplace. By utilizing technology to streamline sales processes, Yume removes the reliance on manual methods that often render the sale of surplus inventory unprofitable and cumbersome for manufacturers.

Yume’s proven track record, which includes partnerships with 15 prominent food manufacturers and impressive metrics demonstrating a diversion of over 7 million kilograms of food waste from landfills, provides a strong basis for our investment. We believe in the platform's ability to create value for both suppliers and consumers while also supporting sustainability goals.

Investor Information

Investible’s Climate Tech Fund led the AUD 2 million seed round for Yume Foods, with additional participation from Investible’s Early-Stage Fund 2, Club Investible, LaunchVic, Edgewater Capital, and various angel investors. This investment marks the 21st commitment from our Climate Tech Fund within 24 months and represents our first collaboration across three of our active Australian funds.

With a focus on supporting businesses that drive positive environmental change, Investible is keen on utilizing its expertise and resources to foster Yume Foods' growth and impact in the market. Our mission aligns with Yume's objectives, creating a mutually beneficial partnership that emphasizes innovation and sustainability.

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Dealert's expert analysis believes that Yume Foods presents a promising investment opportunity. Its innovative approach to managing surplus food aligns with regulatory trends and growing consumer awareness surrounding food waste. The economic landscape encourages businesses to adopt sustainable practices, positioning Yume at the forefront of this evolving market.

This investment not only addresses a critical environmental challenge but also offers strong potential for revenue generation and efficiency improvements for participating suppliers. Given Yume's established partnerships and high retention rates among clients, the platform is likely to maintain robust growth in the coming years.

Moreover, the combination of a seasoned leadership team and a growing marketplace creates significant potential for scaling operations. The backing from multiple Investible funds further enhances Yume’s capabilities, as resources can be allocated toward product and technology development, expanding the company's reach and effectiveness.

In conclusion, Yume Foods stands out as a strategic investment that not only promises financial returns but also contributes to a sustainable future. It exemplifies how innovative technology can address pressing societal issues while creating profitable, environmentally responsible business models.

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