Merian Chrysalis invests in delivery software as a service company Sorted – Merian Chrysalis (MERI), the UK-focused unquoteds investor, has gotten off to a strong start since launching in 2018 – the premium its shares trade at has increased from about 4.5% at the start of the year to over 20%. MERI has this morning announced a £10m investment into Sorted Holdings (Sorted), as part of a £15m series B funding round conducted by Sorted, alongside other investors in the round including Praetura Ventures and NVM Private Equity.
Sorted is a Manchester-based, global Software as a Service (SaaS) company that has developed a delivery management platform which allows retailers (both digital and physical) to effectively manage their delivery and returns proposition. This enables retailers to increase conversion rates, reduce abandoned baskets and maintain customer loyalty. MERI says that Sorted has developed three innovative products:
- SortedHERO, an application programming interface solution allowing retailers to display real-time delivery options at checkout;
- SortedPRO, a delivery management platform for carrier and shipping management;
- SortedREACT, an AI driven tracking platform that aggregates carrier and delivery communications post purchase.
Richard Watts, MERI’s manager, added: “The delivery management sector is ripe for disruption and we believe Sorted has emerged as the only credible, global challenger to the current market leader.”
MERI has deployed 78% of its capital
Following the investment in Sorted, MERI says that it has invested 78% of its capital and that it continues to explore a range of further opportunities.
Initial investments comprised shares in TransferWise, Secret Escapes and Graphcore Limited. They were followed up in December with a $25m investment in a $200m series D funding round conducted by Graphcore, a leading artificial intelligence processor company.
MERI aims to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies. The fund will look to invest in attractively valued minority, private investments with long-term growth rates substantially better than the average UK plc. Once fully invested, it is expected that the company’s portfolio will typically consist of between 7 and 15 investments.
MERI believes that private markets represent an attractive investment opportunity. With many businesses choosing to stay private for longer, the market is growing in significance and the opportunity for investment in high-growth, pre-IPO companies is increasingly compelling. MERI will look to make private investments in companies where the valuation appears attractive, particularly against a market background. These businesses are typically at an advanced stage of private ownership and beginning to consider an IPO.
MERI: Merian Chrysalis invests in delivery software as a service company Sorted
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