Reef Technology, a US-based provider of infrastructure for on-demand services, raised $700m from investors including telecommunications and internet group SoftBank’s Vision Fund yesterday.
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company led the round through its Mubadala Capital fund while financial services firm UBS’s Asset Management unit, venture capital firm Target Global and funds managed by Oaktree Capital Management also took part.
Formerly known as ParkJockey, Reef’s core business was a system that allowed users to book parking spaces through a mobile app, but it has since pivoted to concentrate on converting underused physical space into hubs for on-demand services.
The company’s app still allows parking lot owners to optimise their space, but also offers space for local logistics hubs for e-commerce delivery, localised mini-healthcare facilities, and cloud kitchens that can support on-demand food deliveries.
The round was disclosed alongside the formation of Neighborhood Property Group, an investment vehicle funded by Reef and alternative investment manager Oaktree that will spend $300m on acquiring real estate assets that will support Reef’s business.
Reef operates more than 100 virtual kitchens across the United States and has partnerships in place with logistics provider DHL for last-mile bike delivery, with Crate to Plate for vertical farming and with care provider Carbon Health and diagnostic services provider BioReference for pop-up clinics and covid-19 testing.
Vision Fund first invested in Reef in late 2018, supplying an undisclosed amount at a reported $1bn valuation. It had secured $3m from angel investors in 2014 and an undisclosed sum from VC firm Expansive Ventures in 2016.
Ervin Tu, managing partner of Softbank Investment Advisers, which manages Vision Fund, said: “We believe Reef’s conversion of city parking lots into urban logistics hubs makes them much more useful than in their current form.
“As we have witnessed during the pandemic, proximity to the consumer is increasingly important in today’s economy. We are excited about management’s vision of transforming and revitalising the urban centre, and are confident in Reef’s ability to execute.”
