Start-up company Daily Harvest is now valued at $1.1. billion after its fresh round of funding, according to its CEO Rachel Drori. The company specializes in frozen food products and includes ready-to-blend smoothies.
According to Bloomberg News, the start-up reached unicorn status by raising $77 million from investors, including Lone Pine Capital LLC and Lightspeed Venture Partners, an existing investor in the New York-based Daily Harvest.
Drori said, “Lone Pine can see an opportunity to shake up the food system and understands our company mission”.
According to Pitchbook data, Lone Pine, based out of Greenwich, Connecticut, has invested in consumer-focused companies, including luggage maker Away, Sweetgreen, and Torchy’s Tacos.
The frozen foods shipped by Daily Harvest include latte pods, almond milk, soups, flatbreads, and plant-based ice cream to consumers directly will now open distribution channels from the fresh funds it has received. As per Drori, the company will open its first physical location in Chicago in January to provide customers with a “tasting room” experience.
During the pandemic, there was more consumers’ willingness to buy food online through the majority of the population has not adopted the digital lifestyle. The company will ensure that customers can access Daily Harvest where ever they are. Companies like Chobani have opened retail outlets partly to increase brand awareness.
The company, founded in 2015 and started its operations in 2016, notched up revenue of $ 250 million last year. Daily Harvest is planning to invest in upgrading its technology of online platform and expanding its menu, which includes more than 100 items for meals and snacks. In January next year, the company plans to add “Harvest Bakes”, a collection of items baked as a side dish or individual meals for a household.
As per the Daily Harvest website, the company uses organic vegetables and fruits, and its products do not contain any artificial additives, stabilizers, or refined sugars. Items harvested and frozen the same day have higher antioxidant, beta carotene, and Vitamin C retention.
The company wants to get bigger and do better in focusing on regenerative agriculture and reversing climate change with sustainable farming practices. Most of Daily Harvest products come from the U.S., and they faced no supply chain problems, unlike the bigger rivals, as per Drori.
According to Drori, the company can tweak items faster based on feedback than the large conglomerates. For example, the company’s “Scoops” product was the outcome of customers’ feedback who wanted ready-made ice cream instead of having to blend ingredients.
Daily Harvest is valued at $380 million and includes Serena William’s Serena Ventures, Gwyneth Paltrow, Sutton Capital, Bobby Flay as investors.
