Food52 Inc., which sells kitchen-related home goods online and operates an online community, sold a majority stake to TCG Capital Management for $83 million, based on valuation of at least $100 million, the companies announced today.
In the coming year, Food52 says it plans to use the newly raised money to open a flagship store and expand its Five Two line of kitchen knives, cookware and tableware—which the company says is the most profitable brand in the Food52 Shop.
Food52 will also use the investment to “supercharge” its content, video, and product and engineering teams, the company says.
Food52 sells more than 5,000 kitchen and home goods via drop shipment through its ecommerce platform, the Food52 Shop. Nearly half of those products are exclusive to Food52, the company says. The online shop accounts for 75% of Food52’s total revenue and revenue from ecommerce has grown at an average year-over-year rate of 50%, Food 52 says.
Food52 says its paid marketing spending accounts for only 5% of its ecommerce revenue. The bulk of sales come from members of the Food52 online community, which has more than 16 million members. The kitchen, cooking and home decor community enables cooks and home enthusiasts to share recipes, design tips and other ideas.
“Our true north star is our community and our dogged belief that many is better than one,” said Merrill Stubbs, Food52 co-founder and president. “We met our ideal partner in TCG, which shares our vision and values for building a community-driven consumer brand.” Company officials could not be immediately reached for additional information.
TCG is an affiliate of The Chernin Group LLC, which also has invested in brands including Headspace, an online healthcare company specializing in meditation, and MeatEater, which creates and sells videos about hunting and fishing, along with related apparel.Favorite