Personalized grocery service Hungryroot raises $40m in Series C round
Hungryroot, a personalized grocery service powered by artificial intelligence (AI), has secured $40 million in a Series C funding round led by the L Catterton’s Growth Fund.
The capital from the funding round will be used by Hungryroot for further speeding up its growth by considerably increasing the number of groceries and recipes it offers, as well as growing its team.
Furthermore, the funding proceeds will be used for investing in automation technology, streamlining its personalization algorithm, and scaling marketing.
Ben McKean – Founder and CEO of Hungryroot said: “Hungryroot is pioneering an entirely new way to grocery shop. We leverage proprietary technology to predict and deliver the groceries and recipes that best suit each individual customer’s needs and goals.
“The result is a customer-first, curated experience that reduces the average time consumers spend grocery shopping from two to three hours a week, to just two to three minutes. The days of walking into a giant grocery store with an empty cart and browsing through tens of thousands of items will soon be a routine of the past. Hungryroot does the work for customers so they don’t have to.”
With an AI-enabled platform, Hungryroot leverages predictive and automatic deliveries. The personalized grocery service stated that it utilizes machine learning as well as predictive modeling technologies to build the carts of customers with fresh groceries and simple recipes that best meet their requirements and objectives.
The AI-powered grocery company also helps customers with planning their meals, nutritional support, and at-home delivery.
Chris Roberts – a Partner at L Catterton Growth Fund said: “For most people, grocery shopping is a time-consuming, tedious experience. Hungryroot has created a technology platform made for modern lifestyles that delivers a personalized, AI-powered consumer experience that traditional grocers simply cannot.
“We believe Hungryroot is the first online grocer of its kind and have been impressed with its incredibly capital-efficient e-commerce model, which has already reached profitability. We’re thrilled to partner with and support Hungryroot as they continue to reinvent the grocery category and build upon the Company’s strong momentum.”
Since the beginning of 2020, Hungryroot is said to have been profitable and is on track to earn revenue of $175 million this year. The company is estimating revenue of more than $300 million in the coming year.
Prior to the Series C round, Hungryroot had raised a total of $35 million.