It seems Instagram-driven grocery pop-ups are all over New York right now. Earlier this month we checked out the snack shopping experience at Pop Up Grocer in SoHo. Now, Hungryroot, the grocery e-commerce platform, debuts its first-ever IRL retail location, and the first-of-its-kind direct-to-consumer grocery pop-up. Though Flatiron has no shortage of groceries (and a nearby Whole Foods, Trader Joe's and Eataly) the vegan-friendly online produce shop hopes to attract office workers in the area with plant-based offerings. The pop-up runs now until June 28. Online, Hungryroot only offers subscription-based services, a model that's increasingly prevalent amongst meal kit and other delivery food services: a customizable small order, 11 items costs $69; Medium, 16 items is $99; Large, 21 items, costs $129. You're locked into the bundle deal, though you can cancel at anytime. They compete with other online grocers such as Peapod, Instacart and Fresh Direct's FoodKick (which markets itself as the more millennial-friendly arm) with similar pricing. According to a recent poll from Morning Consult, which surveyed 2,191 adults, only nine percent said they stayed on with their food delivery subscription for half a year or more. Subscription services are waning, perhaps why Hungryroot wants to try a different model.
Hungryroot, a popular plant-based meal delivery service, makes it possible for vegans and meat eaters like me to assemble healthy meals in under 10 minutes
When it comes right down to it, my biggest hurdle to healthy eating is convenience. I love neither grocery shopping nor cooking, and I don't want to spend my limited free time deep diving into (often contentious) online nutritional resources to construct balanced meals each week. But, I do want to eat healthy foods that are good for me. So when I heard about Hungryroot through a colleague, I was intrigued. Hungryroot is a meal subscription service that sends healthy, nearly-ready meals to your door, with ingredients and sauces that you essentially just heat and mix together. Each serving costs about $6-$7 when you do the math, and they take fewer than 10 minutes to prepare.
Hungryroot Raises $22 Million in Series B Funding from Lightspeed
Most startup entrepreneurs would view $1 million a month in revenue as a happy milestone for a company. For Ben McKean, nearing the million dollar mark meant it was finally time to recognize the fear that had been gnawing at him over the last year. His healthy and convenient subscription food business, Hungryroot, had been growing fast since it launched in 2015. Customers were literally hungry for more as they filled the company's Facebook page with five-star reviews and product suggestions. But McKean, the CEO and founder of the company, started to realize that its own manufacturing capabilities were holding growth back. As the company neared the million-dollar mark in early 2017, McKean made the choice to stop taking orders and shut down its own food manufacturing facility. Hungryroot lost all of its revenue overnight.
Hungryroot Raises $7.7 Million to Make Sinful Food Healthier
Ben McKean thinks comfort food can be guilt-free, and his company just raised another $7.7 million to prove it. McKean founded Hungryroot in 2015, sensing an opportunity to use plant-based ingredients to make healthy, easy-to-prepare versions of “craveable” foods. In two years, he has raised a total of $13.5 million in venture capital from Lightspeed Venture Partners, Lerer Hippeau Ventures, and Crosslink Capital, among others. McKean doesn’t mince words -- he is aggressively going after Big Food. The top 25 U.S. food and beverage companies have lost $18 billion in market share in the last five years.
Hungryroot Raises $3.7 Million for Healthy Eats
Brownies made of black beans and cookies made of chickpeas are amongst the unusual recipes found on Hungryroot. Launched last year, the New York-based meal kit startup focuses on vegetable-based natural foods that can be prepared in under seven minutes. After demonstrating “rapid growth,” Hungryroot has raised an additional $3.7 million in financing from Lightspeed Venture Partners, Lerer Hippeau Ventures, Crosslink Capital and others, bringing its total funding to $6 million.
HungryRoot Sprouts $3.7 Million for Veggie-Based Pasta
Pasta without the guilt? Venture capitalists say, “Yes, please.” HungryRoot Inc., a startup peddling pasta made from vegetables and other healthy stand-ins for a foodie’s indulgences, has raised $3.7 million in a Series A round led by Lightspeed Venture Partners. Its products, currently sold online, will appear in Whole Foods WFM +3.16% grocery stores beginning this summer, said co-founder and Chief Executive Ben McKean.