Total amount raised
$75.4 Millions
Latest funding date
06/01/2021
Location
Hungryroot has successfully raised funds through multiple rounds, with the latest being a Series C round closed on June 4, 2021. The company has attracted investments from notable names like L Catterton and Crosslink Capital, among others.
Keep reading to explore the intricacies of Hungryroot's fundraising journey and the investors backing this innovative platform.
What Is Hungryroot?
Hungryroot, founded in 2015, is based in New York, New York. The company offers an AI-powered personalized grocery service that tailors meal plans and groceries to individual dietary preferences and needs.
Founded by Benjamin McKean, Franklin Becker, and Gregory Struck, Hungryroot uses proprietary predictive technology to deliver groceries and recipes. The service aims to simplify meal planning and provide nutritional support.
With a team of 101-250 employees, Hungryroot continues to innovate in the food delivery space, offering ready-to-eat meals, dietary-specific foods, and supplements to its subscribers.
How Much Funding Has Hungryroot Raised?
- Seed Round
- Amount Raised: $2M
- Date: May 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the company and develop its AI-powered personalized grocery service.
- Series A
- Amount Raised: $3.7M
- Date: March 2016
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the product offerings and enhance the AI technology.
- Series A
- Amount Raised: $7.7M
- Date: January 2017
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market reach.
- Series B
- Amount Raised: $22M
- Date: March 2018
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the technology and expand the customer base.
- Series C
- Amount Raised: $40M
- Date: June 2021
- Lead Investors: L Catterton
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth by expanding grocery and recipe offerings, growing the team, investing in automation technology, optimizing the personalization algorithm, and scaling marketing efforts.
Total Amount Raised: $75.4M
Current Valuation: Not publicly disclosed
Key Investors
- L Catterton
- Details: L Catterton is a global consumer-focused private equity firm with over $27 billion of equity capital across its fund strategies. The firm has made over 250 investments in leading consumer brands since 1989.
- Investment Focus Areas: Consumer brands, food and beverage, retail, consumer products.
- Notable Investments: Better Mortgage, Vroom, Nutrafol.
- Lightspeed Venture Partners
- Details: Lightspeed Venture Partners is a venture capital firm that focuses on early-stage investments in the enterprise, consumer, and health sectors. The firm has a global presence with offices in Silicon Valley, Israel, India, and China.
- Investment Focus Areas: Enterprise, consumer, health.
- Notable Investments: Snap, Grubhub, Nest.
- Crosslink Capital
- Details: Crosslink Capital is a venture capital and private equity firm based in San Francisco. The firm invests in early-stage and growth-stage companies across various sectors.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Pandora, Ancestry.com, Coupa.
What's Next for Hungryroot?
Hungryroot is poised for significant growth, with opportunities to expand its grocery and recipe offerings, grow its team, and invest in automation technology. The company is on track to achieve $175 million in revenue this year, with a forecast of over $300 million for 2022. This growth trajectory suggests potential for future fundraising rounds to support continued expansion.
However, Hungryroot may face challenges such as scaling operations to meet increased demand and maintaining profitability while expanding. Competition from other grocery and meal delivery services and managing supply chain complexities are also potential hurdles. Despite these challenges, the company's innovative use of AI and machine learning positions it well in the rapidly growing online grocery sector.
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