Marc Lore’s Wonder bets on Texas, automation and user-built restaurants as it mulls IPO

Key points

• Wonder, the food startup founded by Marc Lore in 2018, has raised $3.3 billion and reached a $9 billion pre-money valuation in its Series D round this year.
• Wonder plans to enter Texas next year with a goal of at least 100 locations in the state by the end of 2027, and aims for fully autonomous food preparation and delivery by 2040.
• Wonder is preparing for a potential IPO and hired Gabrielle Scheibe Rabinovitch as chief financial officer in March, though Lore declined to discuss timing.

Wonder, the food technology startup founded by serial entrepreneur Marc Lore in 2018, has raised $3.3 billion to date and is weighing an initial public offering while planning its first expansion into Texas. Its Series D fundraising round earlier this year raised its pre-money valuation to $9 billion.

Wonder operates food hall-style locations where customers order takeout or delivery through its app or third-party platforms, including Grubhub, which Wonder now owns. About 170 Wonder storefronts have opened from Virginia to Massachusetts over the last three years.

Expansion and automation plans

Wonder plans to enter Texas for the first time next year, with a goal of at least 100 locations in the state by the end of 2027. The company prepares food at commissary kitchens and transports it to all-electric storefronts, where employees unseal, cook and finish menu items.

Wonder is automating some kitchen functions, such as assembling salads and bowls and soon sauces and beverages. Lore told CNBC the company aims for food preparation and delivery to be fully autonomous by 2040.

Wonder is a vertically integrated food technology platform to make great food more accessible.

— Marc Lore

IPO and financial picture

Wonder hired Gabrielle Scheibe Rabinovitch, previously at Worldpay, as chief financial officer in March as it prepares to go public. Lore declined to comment on IPO timing to CNBC, though he has previously told Fortune the company will be ready to go public early next year.

Since buying Blue Apron and Grubhub, Wonder has been operating at a financial loss, The Information previously reported. Wonder plans to lower meal prices through automation and drone delivery, a plan that could cut costs long term but requires costly groundwork.

New subscription offering

Starting Nov. 17, Wonder plans to launch Wonder Create, which lets influencers, entrepreneurs and brands pay $10 a month to start their own "restaurant" based at a Wonder location and earn a portion of order revenue. Artificial intelligence will help users create their brand, including name, logo, pricing and recipes.