New Zealand's Appetise, a grocery insights and meal planning platform, has successfully secured US$5 million (A$7 million) in a Series A funding round. This financial milestone, achieved less than a year after its Australian launch, highlights the rapid adoption of its unique business model. The company leverages a free consumer app to power a sophisticated B2B data analytics platform, positioning it for significant international growth.
A Strategic Pivot to Data-Driven Insights
Appetise operates a dual model, offering a free meal planning application to consumers while monetizing its B2B product, Appetise Insights. This platform provides food and beverage companies with detailed analysis of how households actually plan meals and purchase groceries. The consumer app serves as the engine for this data, creating a vast behavioral research panel across Australia and New Zealand.
The company made a deliberate shift away from a consumer subscription model to accelerate the growth of its data set. Co-founder and CEO Toby Hilliam noted the company walked away from A$400,000 in subscription fees, a calculated risk that has since paid off handsomely. This strategic pivot has resulted in A$3.5 million in B2B revenue, which has tripled in the last six months alone.
Redefining Market Research in the Food Sector
Appetise presents a compelling alternative to traditional market research methods that often rely on retrospective sales data or survey-based panels. Hilliam explained that scan data reveals what happened but not why, while surveys can be skewed by what respondents think they should report. The platform instead captures the entire shopping journey, from initial planning to final checkout, providing a more accurate picture.
This comprehensive, anonymized data allows brands to understand consumer decision-making at a much earlier stage in the purchase process. Innovation teams can identify new product opportunities, while category managers can engage in more evidence-based discussions with retail partners. Marketers gain a clearer understanding of the specific needs and occasions that drive consumer shopping habits within a category.
The company's expansion strategy prioritizes building a substantial consumer panel before engaging with corporate clients. This "panel first, brands second" approach ensures the data is representative and credible, a key factor in securing partnerships with major brands. With over 110,000 active users, Appetise has successfully attracted clients like Kraft Heinz and Lee Kum Kee, with Australia driving 70% of its growth.
Fueling Expansion and Eyeing the US Market
The oversubscribed funding round, led by Icehouse Ventures with participation from existing investors, will fuel the company's next phase of growth. The capital is earmarked for deepening its presence in the Australian market and enhancing the capabilities of the Appetise Insights platform. A significant portion of the investment will also be dedicated to preparing for a strategic entry into the lucrative United States market.
The leadership team is fully aware of the complexities involved in entering the US, acknowledging significant localization requirements. Hilliam pointed to the different retail landscape, the imperial food system, and distinct cultural influences on food consumption as key challenges. The company is already adapting its playbook to address these differences, from product terminology to consumer behavior patterns.
This US$5 million capital injection marks a pivotal moment for Appetise, validating its innovative approach to market intelligence in the food industry. By successfully turning consumer utility into a powerful B2B insights engine, the company has demonstrated remarkable growth and is now well-equipped for its next chapter. As Appetise refines its platform and prepares to navigate the American market, its model of tracking actual behavior will be a key differentiator.