Health-conscious meal kit business Sun Basket has raised US42m in an investment round led by August Capital.
The fast growing San Francisco firm, which delivers organic produce and sustainable ingredients with recipes weekly to customers’ doors, has also raised $15m in debt financing from Trinity Capital Investment, bringing the total new funding to $57.8m.
Sun Basket – which has previously attracted investment from food giant Unilever‘s Unilever Ventures arm – has two new distribution facilities launching in the first half of this year and suggests it has the capacity to build a $1bn revenue business.
Over the last 12 months, the company grew net revenue by more than 280%, hitting $250m in annual revenue at the beginning of Q1 2018.
It says its diet-specific meal plans, personalised to its customers’ unique lifestyle needs, is creating a highly “sticky” business model and that it can now reach 98% of the continental US through three distribution centres.
CEO and co-founder Adam Zbar said: “Over the past year, Sun Basket has grown immensely in customers served, products offered, team size, and overall sales.
“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.”
The new funding will be used to extend its meal range with plans to introduce vegan, Mediterranean, and Pescatarian menu offerings,
Tripp Jones, general partner of August Capital, has joined the company’s board of directors.
He said: “We’re thrilled to partner with Sun Basket in its next phase as the company continues to scale rapidly and build out its healthy personal choice platform, which has the power to disrupt the $650bn grocery market by providing consumers a healthier, easier, and more personal way to cook and eat delicious food.”
The investment round also included Sapphire Ventures, Accolade Partners, Founders Circle, Rembrandt Venture Partners, Vulcan Capital, Relevance Capital, Unilever Ventures (again), and Correlation Ventures.
Unilever Ventures led a $9m funding round in Sun Basket last May.