Food delivery startup Gobble, which delivers quick-to-make DIY meals with chopped and ready-to-toss ingredients, has raised $10.75 million in Series A funding.
The latest round of funding was led by Trinity Ventures, along with other participating investors, including Andreessen Horowitz, Initialized Capital, Anjula Acharia-Bath, Fenox VC and Rohan Oza, CEO of Ideas Merchants Capital, TechCrunch reported.
The Palo Alto, California-based startup, which is currently serving over 1 million meals per year, said it plans on using the investor money to expand its presence across the U.S. and further build up its engineering and data science team.
The company's business model of delivering pre-cut ingredients, which can be quickly cooked into a whole meal, is a deviation from its original plan when it launched in 2011 of delivering affordable door-to-door meals.
"We are applying the 'Ikea effect' to the meal-delivery business," said Gobble Founder Ooshma Garg, a Stanford University graduate, in an interview with Silicon Valley Business Journal. The Ikea effect refers to the idea that consumers tend to value products more if they were involved in making it themselves.
The startup currently charges an all-inclusive price of $11.95 per meal if a customer orders six or more meals and $13.95 per meal if you only order four meals.
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