Food and nutrition product manufacturer Nestlé USA led a $77m round for Freshly, the US-based operator of a healthy meal subscription service, yesterday.
Venture capital firms Highland Capital Partners, Insight Venture Partners and White Star Capital also participated in the round.
Founded in 2015, Freshly provides a weekly meal delivery service to its monthly subscribers, supplying food from a menu of 30 nutritious, chef-prepared meals that are already prepared and ready to be heated up for dining.
Freshly currently operates a kitchen and distribution centre in Phoenix, Arizona, and the new funding will support construction of an east coast centre in the state of Maryland.
Jeff Hamilton, president of Nestlé USA’s Food Division, will joins Freshly’s board of directors. He said: “Freshly is directly aligned with Nestlé’s strategic focus on finding new avenues to deliver delicious, nutritious meals to consumers in a way that fits their busy lives.
“The company was founded by time-constrained professionals who did not have time to cook, but wanted to eat healthy meals. Two years later, their goal to offer heat-and-serve meals has become a successful business that reflects America’s changing eating habits.”
In addition to investing, Nestlé plans to provide assistance for the company in ingredient sourcing, food preparation and safety, packaging, distribution, advertising and marketing.
The round took Freshly’s total funding to approximately $107m. BrandProject provided seed funding before Highland Capital, White Star Capital and angel investor Jason Finger added $7m in mid-2015.
Insight Venture Partners subsequently led a $21m series B round in July 2016, participating alongside existing investors including Highland Capital Partners and White Star Capital.
– Photo courtesy of Freshly, Inc.