Plated.com snags $35 million in fresh funding
July 22, 2015 03:21 PM
Plated.com has a full plate these days. The e-retailer of fresh meal kits sold by subscription says it has raised $35 million in new funding from existing investors, bringing its total funding to date to $56.4 million.
The e-retailer will use the capital to expand and to improve its supply chain so there is less waste. Co-founder and co-CEO Nick Taranto says the e-retailer’s food waste is less than 2%, which is less than grocery industry averages. Plated.com sells nine meal kit varieties each week, with each kit providing the ingredients necessary to prepare the meal; nothing more and nothing less. “We have predictable revenue and very limited inventory,” he says. “Every day we ship everything we have, which means our food waste is less than 2%. That translates into higher margins.”
Plated.com works with ingredient suppliers across the country, and Taranto says the company has 100% visibility throughout its supply chain, which is important to customers. “That supply chain matters to our customers and is good for business,” he says. Plated.com’s target customer is what the e-retailer calls an “evolved eater” who wants high-quality food and to know where their food came from. The meat Plated.com uses in its meal kits, for example, comes from animals raised hormone-free and antibiotic-free.
Taranto says Plated.com grew sales 400% last year, and the e-retailer now ships to customers in the lower 48 states. Plated.com is No. 567 in the 2015 edition of Internet Retailer’s Second 500 Guide. In 2014, it was No. 713. Existing investors Greycroft Partners and Formation 8 participated in the funding round. Blue Apron Inc., a competing meal kit e-retailer that is No. 318 in the 2015 Top 500 Guide, raised $135 million in new funding in June.
For more on Plated.com and other e-retailers selling grocery goods on the web, check out the cover story of Internet Retailer magazine’s August issue, available Aug. 1. Sign up for a free subscription here.