Delicious, healthy meals delivered hot with free delivery and no minimum order in less than 25 mins.
- London, United Kingdom
Categories: Food & Beverage Digital Mixed B2B/B2C
- Social Media
- Company number
- Incorporation date
- 3 Sep 2014
- Investment sought:
- Discount offered:
Learn more about convertible campaigns.
Pronto is on a mission to change the food industry for the better by creating delicious, affordable, quality meals that are healthy enough to eat every day and available at the touch of a button.
We are a vertically integrated food technology company with control over the things that matter most - our chefs prepare hot meals in our own kitchens using fresh, sustainably sourced ingredients which are ordered through our app/website and delivered by our drivers.
The key terms that apply to the Pronto convertible are as follows:
• Discount: 15% to the valuation set by the Trigger Event.
• Conversion is triggered by (“Trigger Events”):
o An Equity Fundraise – defined as the Company raising investment capital of at least £1m from one or more persons;
o A sale of all, or substantially all, of the shares in the Company;
o An IPO.
• If a conversion has not occurred by the “Longstop Date” (being 7 September 2016), the investment would convert at a pre-money valuation of the company of £4,485,668 (price per share determined by dividing the pre money valuation by all existing shares and options at the time of conversion).
• In addition to the automatic conversion events mentioned above, if there is a ‘non qualifying equity raise’ (being an equity raise of less than £1m) prior to the Longstop Date, there will be an option to convert on that raise at a discount of 15% to the price set by the raise or at a pre-money valuation of £4,485,668. Seedrs would exercise this option on behalf of the investors for whom it acts as nominee. If a non qualifying equity raise occurred, Seedrs would always exercise this option to convert, unless Seedrs reasonably believes that doing so would not be in the bests interests of those investors.
• The convertible would also convert to equity at a pre money valuation of at a pre-money of £4,485,668 in the event of winding up or liquidation of the company.
There is no valuation cap on this convertible.
Our aim is to provide Londoners with the easiest and most affordable way to eat quality food on demand in London in less than 25minutes.
Our chefs have designed a nutritionally balanced menu where each meal includes at least two of your five a day with quality ingredients and healthy cooking processes. We include nutritional information on every item of food and drink we offer so that our customers can track their daily intakes, a level of transparency only possible due to our vertical integration.
Everything we make is fresh today, gone today.
Substantial accomplishments to date
In only 18 months post-launch, Pronto will have rolled out 4 sites in central London (in Mid-June we are scheduled to open new sites at Mayfair and Canary Wharf).
Pronto was a 2015 MassChallenge finalist and has raised just under £1m in seed fundings from investors, which include Playfair Capital and Seedcamp.
CEO James Roy Poulter has been recognised by Forbes 30 Under 30. His vision is to enable Londoners to make a habit of healthy eating by providing delicious, hot, affordable meals and changing the food delivery market as we know it.
Pronto has created what we believe is a completely new food technology infrastructure, enabling us to provide restaurant-quality food, healthy enough to eat every day and designed to be available in less than 25 minutes at the touch of a button.
Pronto uses technology to underpin every element of the process, from sourcing ingredients and using predictive analytics to reduce wastage, to our 'three clicks' ordering platform and the creation of a highly efficient delivery infrastructure.
We aim to unlock economies of scale in our business model through reduced delivery, food purchase & processing cost, whilst we experience reduced CAC from increased brand awareness - more drivers on the road, and more packaging & food in home & offices.
Use of proceeds
Pronto plans to continue the expansion of our delivery area to cover the whole of central London. In order to do this we need to build out another 2 distribution centres. These distribution centres are strategically placed so that we can ensure that as many Londoners are able to avail of Pronto. We see that the majority of customers that come to the site are currently outside of our delivery zone. Our roll-out is planned to cover 90% of customers outside our current delivery zone. We also have plans to roll-out operations to mainland Europe in Q1 2017.
Pronto's target market is everyone who wants access to delicious, healthy, quality food - on demand.
Young professionals currently make up a large proportion of the customer base, as they are time poor and value the convenience of a high quality, healthy meal aiming to be delivered in less than 25 minutes.
Characteristics of target market
The UK is the largest food delivery takeaway market in Europe and the second largest in the world.
The market has experienced significant growth thanks to advances in technology and an increase in healthier options for more health-conscious consumers.
In 2014, the foodservice market contributed £9bn to the UK economy.
Our customers' consistent feedback is that they order from us because the meals are healthy and delicious and we hope to capitalise on this healthy-conscious food trend by rolling out a rotating menu of nutritious and well balanced meals to our fans.
Until recently, we reached our current customer base solely through social media marketing and limited local advertising and promotion. Pronto is a viral product with many customers making their first order through referral from a friend.
We have just rolled out our first marketing campaign on 23rd May. It is a hyper localised mix of tactics, including both online and offline avenues, to engage with existing and educate potential customers. We are currently advertising at major tube and railway stations in our delivery area.
Customer success is key to what we do at Pronto, we have processes in place that allow us to monitor customer feedback constantly and mean that we can change menus depending on customer feedback.
Pronto's technology is at the heart of the business and is the key differentiator that we believe provides its competitive advantage. As Pronto scales, the data we have gathered on historic orders will enable us to enhance our algorithms to optimise routes and pick-up/drop-offs patterns, customise meal choices and offer more personlisation which we believe will give Pronto an undisputed technological advantage against our competitors.