Mathem valuation crashed after the pandemic highs

Online grocery has been struggling to grow after the extraordinary pandemic times. The unprecedented pandemic growth led to ballooning valuations of online grocers. The two Kinnevik-funded online grocers, Oda and Mathem, illustrate the colossal valuation growths during the Covid era.

Both have seen their valuations cut radically. During the pandemic, the valuations soared by 50% (Mathem) and 150% (Oda). Despite growing its revenues by 5%, Oda has had to reduce its valuation to pre-pandemic levels.

Time has been more difficult for Mathem. Its revenues have declined for four quarters in a row. Since Q2/2021, its revenues have reduced by 9,3%. Along with the market turmoil in the online grocery environment, this revenue decline has led to a massive write-down of value for Mathem.

Mathem's valuation has crashed from 4,6 billion SEK in Q1/2021 to 0,6 billion SEK in Q2/2022.

It will be interesting to see what kind of consequences this kind of decline will have on the company's ownership. Would Kinnevik be interested in the challenging investment, especially as the company does not have a similar growth potential to Oda?

Maybe the second biggest owner, Axfood, will swallow the rest of Mathem and make it into the home delivery arm of the company.