Chicago-based meal kit delivery service Home Chef announced on Thursday it raised a $40 million Series B round. L Catterton led the round, and the funding will be used to fuel the company’s growth.
Home Chef is one of several companies competing in the convenient home cooking space, offering busy professionals dinner recipes and portioned fresh ingredients on a subscription basis. The company differentiates itself from its competitors by offering options to customize menus and add on items like breakfasts and fruit baskets.
“In today’s fast-paced world, demanding schedules get in the way of prioritizing what we are feeding our families and ourselves,” said founder and CEO Pat Vihtelic in a statement. “At Home Chef we strive to provide great meals, the most variety and superior flexibility at an affordable price to accommodate our customers’ busy lives. As a result, we are experiencing tremendous growth and this round of investment will enable us to achieve our growth goals.”
Founded in 2013, Home Chef’s rise over the past year has been nothing short of meteoric. The $40 million Series B comes on the tail end of a $10 million Series A just this May. Back then, the company had 400 employees — that number has since increased to 600.
Home Chef has also grown its shipment volume by more than 150 times since early last year, delivering more than 1.5 million meals per month. Just this May, that number was 540,000.
Moreover, Home Chef recently opened a new distribution facility near Atlanta, Georgia in addition to its existing facilities in Chicago and Los Angeles. Together, these three facilities let the company deliver to 97 percent of America’s households.
“We are impressed by Home Chef’s rapid expansion and growth, demonstrating their ability to capture an increasing share of this exciting category,” said Michael Farello, Managing Partner of L Catterton’s Growth Fund in a statement. “Home Chef’s ability to provide consumers a wide variety of home-cooked favorites — at prices that are often lower than the cost of separately purchased ingredients — is a clear recipe for success.”
Home Chef’s meals typically cost $9.95 per person, with family plans available at a slight discount.
Images via Home Chef.
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