One of the best reasons to launch a startup is to solve a problem you know well.
That was the case for Serenity Carr and Joe Carr, co-founders of baby food maker Serenity Kids. When they had their baby, Della, they couldn't find the type of nutrition they wanted to provide for her. So they started doing it for themselves.
That was back in 2016. Now, Della is no longer a baby, and neither is the couple's growing business. The startup announced March 11 that it landed a $52 million minority investment from Stride Consumer Partners LLC, a Boston-based private equity firm that has backed emerging brands including Chomps, Yasso Frozen Greek Yogurt and Jeni's Splendid Ice Creams.
The company wasn't in search of additional backing. Its products, including shelf-stable baby food pouches and grain free puff snacks, are already in 18,000 grocery stores nationwide including H-E-B, Kroger and Whole Foods Market. And business continues to boom.
But a big cash infusion, and the partnership that comes with it, is still a game changer. The company said it will channel the new funds toward marketing, key hires and innovation.
"The current investment landscape is pretty dire, so our ability to attract this financing and partnership validates our differentiation, mission, and growth potential. We're excited to pour more resources into our revolution that elevates children's nutrition so that all future generations can thrive," Joe Carr stated. "We are profitable and were not seeking to raise funds, but when we met the Stride team we immediately connected with them and appreciated their approach to building strong sustainable brands."
In 2021, the company moved its headquarters to a 4,600-square-foot space on a half-acre plot at 5524 W. U.S. Route 290 in Southwest Austin. Serenity Kids was ranked No. 366 on the 2023 Inc. 5000 list after it disclosed it had grown revenue 1,577% from 2019 to 2022.
The company said it logged 71% year-over-year retail revenue growth from 2022 to 2023.
Prior to the private equity infusion, the company had raised about $14 million in venture capital funding from investors including CircleUp Growth Partners, Wild Ventures and a variety of angel investors including Jason and Colleen Wachob, married co-founders of Mindbodygreen, and Joe De Sena, founder of Spartan Race.
