HelloFresh, a Berlin-based company that delivers ingredients and recipes for meals to subscribers’ doorsteps in Europe, the United States and Australia, has raised $50 million in a Series D funding round, bringing the company’s total funding to $67.5 million.
This latest investment is led by New York City-based Insight Venture Partners. Phenomen VC also participated in the round. HelloFresh says it will use the money to fuel global expansion.
The company, founded in November 2011, says it recently achieved profitably in its core European market and now ships more than one million meals per month to consumers worldwide. In the U.S., HelloFresh now ships to consumers in 37 states after recently adding Texas, North Dakota, South Dakota, Oklahoma, Minnesota, Nebraska and Louisiana.
“More than 90% of people eat weeknight dinners at home, yet the way people shop and plan these meals has been the same for the past 50 years,” says Dominik Richter, founder and CEO of HelloFresh. “We have the unique opportunity to change the way people think about dinner by offering them a hassle-free way to enjoy high-quality and healthy, self-cooked meals with their partner or family in their own home.”
HelloFresh subscribers choose a box containing between three and five recipes available on the company’s web site, and all the ingredients are delivered once per week to the customer’s door. Ingredients are portioned out into individual quantities, and the boxes contain step-by-step recipe cards. Meat and produce arrive fresh with ice packs, and most meals can be prepared in 30 minutes or less. In the U.S., prices per meal with a subscription plan start at $9.08 for vegetarian meals and $10.75 for non-vegetarian boxes.
HelloFresh has offices in New York, London, Amsterdam and Sydney. It ships to consumers in Germany, Austria, the United Kingdom, Netherlands, Australia and the U.S. and employs 120 people. The company’s previous investors include Holtzbrinck Ventures, Vorwerk Ventures, Rocket Internet and Kinnevik.
Online grocery and meal delivery programs are catching the eyes of more investors. The HelloFresh funding comes on the heels of $44 million raised by U.S. online grocery service Instacart earlier this week. Instacart enables consumers to order groceries from multiple stores via one web site and get them delivered in about an hour. The company employs personal shoppers who visit stores, shop the aisles to purchase items on a customer’s shopping list and deliver it to her door. Another online meal kit delivery service, Plated.com, has raised $8 million since its founding in late 2012, and says it is growing sales 30% to 40% per month. And Blue Apron, similar to Plated and HelloFresh, has raised $58 million since it launched in 2012.Favorite