NEW YORK — Online grocery service Hungryroot has raised $40 million in a Series C funding round led by the growth fund of private equity firm L Catterton. The company plans to use the capital to increase the number of groceries and recipes offered, expand its team, invest in automation technology, optimize its proprietary personalization algorithm and scale marketing.
Founded in 2015, Hungryroot uses machine learning and predictive modeling technologies to offer a personalized grocery delivery experience that is convenient, affordable and sustainable. The company is on track to generate $175 million in revenue this year and is forecasting more than $300 million in revenue in 2022. Hungryroot became profitable early last year and has raised $75 million in financing to date.
“Hungryroot is pioneering an entirely new way to grocery shop,” said Ben McKean, founder and chief executive officer of Hungryroot. “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.”
Chris Roberts, 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.”