The food delivery industry is extremely well fed.
Yesterday, CB Insights reported that companies operating in the food delivery space raised nearly $486 million across 109 deals globally between Q2 2013 and Q1 2014.
Today, you can add another Chicago-based startup to that tally.
Home Chef, a service that delivers fresh ingredients and instructions needed to cook a restaurant-quality meal at home, has just announced a new round of seed funding from Guild Capital. (Home Chef did not immediately respond to a request for actual figures).
“Home Chef is uniquely positioned to disrupt online grocery, and this new round of seed funding gives us added support as we continue on our growth path,” said Co-Founder and Chief Product Officer Bryon Finke in a release. “It is a vote of confidence that our product is creating tangible economic value for customers through convenience, chef curation and ingredient sourcing efficiencies.”
Here's how it works. Users sign up for Home Chef and select dietary restrictions, meals, family size, taste preferences, and a delivery date. Using this information and efficient supply chain practices, Home Chef then drops off everything a person needs - including step-by-step visual directions - to prepare and execute a perfect dish. It's delivery for those that enjoy cooking. Home Chef is a flexible subscription-based service and members receive a box a week.
Right now, Home Chef reaches customers in over 60 percent of the U.S., including the entire Midwest and a majority of the Southeast and East Coast. The new funding will go towards growing that number and accelerating expansion. The company has a staff of seven full-time employees, seven part-time employees, and several rotating guest chefs that help with menu development.
Of the $486 million that went to the food delivery space, five startups alone raised nearly a fifth of that total and 83% of all funding has come since the start of 2014.
CB Insights suggests that the GrubHub Seamless and Just-Eat's well-performing IPOs have resulted in the investor fervor. And with the global market for online food delivery predicted to reach $100 billion by 2018, you can expect this space to become even more crowded than it already is.
But with a unique model and an innovative supply chain, Home Chef plans to keep their seat at the table.
