America’s fast-growing meal kit service just raised millions in funding

By Oscar Rousseau contact

- Last updated on GMT

Sun Basket has intrigued investors with its ability to use customer data to create personalised food delivery boxes
Sun Basket has intrigued investors with its ability to use customer data to create personalised food delivery boxes

Related tags: Organic food

US media have whooped and cheered about organic meal kit delivery service Sun Basket after it raised US$57.8m in funding at a time when door-to-door food box schemes look wobbly.

San Francisco-based Sun Basket delivers organic meat and veg recipe boxes and claimed its latest round of funding, led by August Capital, would help the four-year-old business generate over US$1 billion in revenue.

The company grew faster than Airbnb, Uber and Zappos between 2014 and 2016, while its net revenue last year increased by more than 280%, hitting US$250m in Q1 2018.

‘Excited’ about growth potential

Over the past year, Sun Basket has grown immensely in customers served, products offered, team size, and overall sales,​” said Adam Zbar, CEO and co-founder of Sun Basket.

As we scale the business in 2018, we are excited to have August Capital on board, given its track record of helping numerous innovative companies grow, while maintaining strong unit economics and great product quality.​”

Tripp Jones, general partner at August Capital, added: "[I am] excited to work with Adam Zbar and the rest of the Sun Basket team to prove, once again, that conventional wisdom can be wrong.​”

US media companies, including our sister title Food Navigator​, Bloomberg​ and Fast Company​ reported that meal-kit businesses intrigued investors by their use of technology and ability to build direct relationships with consumers. But of late, investors have become bearish after the industry took a wobble when Blue Apron’s stock plunged, disappointing investors after a much-hyped initial public offering.

However, Sun Basket is giving investors something to cheer about in the sector.

The business uses customer data to create personalised food boxes and can reach 98% of continental US homes via three distribution centres. The business has up to three times the customer retention rate of major competitions, according to a third-party analytics platform. And it is building two new automated facilities thanks to the US$57.8m round of funding. All of this has given investors something to feel bullish about.

Jones, of August Capital, believes the mix of ingredients gives Sun Basket “the power to disrupt the US$650bn grocery market”.

Related topics: Poultry, United States, Lamb, Pork, Beef, Products

Related news

Related products

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Microbiological safety of raw-fermented sausages

Microbiological safety of raw-fermented sausages

Jungbunzlauer | 18-Feb-2019 | Technical / White Paper

Raw-fermented sausages are prone to the contamination with pathogens such as Salmonella and Listeria. Jungbunzlauer gives a new impetus to the exploration...

From trust grows success

From trust grows success

K+G Wetter | 09-Oct-2017 | Data Sheet

The award winning company Wünsch’s Fleischspezialitäten sets new quality standards for meat products – using machines made by K+G Wetter.

Related suppliers

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.