Given the struggles on-demand food delivery services have had this year, it is something of a welcome change of pace to report that Home Chef has closed a $40 million funding round that it will use to expand. The round was led by private equity firm L Catterton and brings the three-year-old firm’s total funds raised to $52 million across six funding rounds.
“We plan to use proceeds from this round to continue growing our customer base, team and operational infrastructure,” said Home Chef Chief Revenue Officer Richard DeNardis. “As more customers become aware of the benefits that meal-kit services provide, we will continue to grow by offering a broad range of familiar choices and a simple, intuitive cooking experience.”
The service works similarly to other services of its type. Customers input an email address and zip code and fill out a meal preference questionnaire about what they like, don’t like and need to avoid due to dietary constraints.
Home Chef offers free delivery and charges shoppers $9.95 per serving for up to six servings.
“We are experiencing tremendous growth, and this round of investment will enable us to achieve our growth goals,” said Home Chef CEO and Founder Pat Vihtelic.
Home Chef is the latest in a string of food-focused online retailers to raise major funds this week. FreshDirect has also announced that it raised $189 million in private equity funding.
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