Meal Delivery Service RealEats Wraps $16M Series A

RealEats has just raised some real money. The meal delivery service announced on Tuesday (Oct. 26) that it had concluded a $16.3 million Series A funding round.

RealEats, a weekly subscription service that says it gives customers the chance to “enjoy the nutritional benefits of real food,” plans to use the funds to move into a new 80,000-square-foot facility in Geneva, New York and to support the launch of a new meal line.

The Series A was led by Hamilton Lane (NASDAQ: HLNE) on behalf of the New York State Common Retirement Fund, along with GNC, Armory Square Ventures and Excell Partners.

“We are thrilled to partner with such highly strategic and supportive investors who share our vision for a healthier food future,” said Dan Wise, founder and CEO, RealEats America Inc., in the press release. “This capital raise is a testament to the dedication of our amazing team, the delicious real meals they make and our incredibly loyal customers across the country. RealEats is poised to expand significantly with this infusion of capital and the growing consumer demand for healthy, real food.”

Meanwhile, Yong Kai Wong, GNC’s executive vice-chairman, has joined RealEats’ board and is working with the company on collaborations with GNC, which includes making RealEats meals available through the GNC website, the first fresh meal brand to do so.

“Our partnership with RealEats as part of GNC Ventures, the innovation and technology incubation arm of GNC that focuses on fast-growing, disruptive companies in health and wellness, allows GNC to provide fresh, healthy meals and a holistic wellness offering to our customers,” Yong Kai said.

Read more: How Consumers’ Growing Appetite for Subscription Services Can Help Sustain the Food and Restaurant Industries

Companies like RealEats have enjoyed an explosion in popularity during the pandemic, with customers turning to subscription services to meet their needs during stay-at-home orders.

Subscription commerce sales rose 41% in 2020 and are projected to hit close to $28 billion by the close of this year. But as PYMNTS’ research has found, the appeal of these services has outlasted those stay-at-home mandates, with 205 million Americans belonging to at least one subscription service, compared to 182 million in the first quarter of 2020.