Rival tech businesses to merge

QR code ordering early-stage businesses Mr Yum and me&u are close to merging.

The all-stock deal, that has been under discussion for months, will enable the businesses to pool their resources to step up international expansion.

The merger is still subject to shareholder approval but assuming it is agreed will create a business that will generate close to $40 million in annual revenue processing more than $2 billion in restaurant transactions from 6,000 venues in Australia, New Zealand, the UK and the US.

Brisbane-based investor syndicate TEN13 led Mr Yum’s seed and post-seed capital raising rounds and strongly supports the merger with me&yu.

TEN13 co-founder Stew Glynn has served on the Mr Yum board for the past three years and has seen the business grow from a minimum viable product (MVP) servicing a couple of cafes in Melbourne to a global leader in a category it has helped define.

Glynn said he was confident of the prospects of the combined venture especially with Kim Teo of Mr Yum taking on the role of chief executive. He said the business would be strengthened by the addition of me&u founder Stevan Premutico and the wider me&u team.

No value for the combined business has been disclosed, nor, so far, the name under which it will trade after the merger.

Mr Yum has raised more than $100 million from investors including TEN13, AirTree Ventures and New York-based Tiger Global. Me&u has raised $66 million from backers including Justin Hemmes of venues company Merivale, chef Neil Perry and Acorn Capital.

Both companies recognised the change in investor sentiment toward loss-making high growth tech ventures late last year and realised capital-raising to maintain their growth trajectories would be difficult. They both cut staff numbers to conserve capital. Neither has since sought to raise new capital.

Image: Kim Teo of Mr Yum and Stevan Premutico of me&u.