Nestlé leads $77M round for healthy meal startup Freshly
Freshly has raised a big funding round from a big name — the U.S. division of food and beverage giant Nestlé.
Co-founder and CEO Michael Wystrach has pitched the startup as a way to get healthy, on-demand meals. That doesn’t mean you order from Freshly every time you want to eat — instead, you get one delivery of all your meals for the week. Then, when you’re hungry, you just heat one of them up in your microwave or stove.
Freshly has a rotating menu of 30 different dishes, created in consultation with nutritionists. It says those meals are made without refined sugars or artificial ingredients (currently, the company has a list of 85 banned ingredients). Pricing starts at $49.99 per week for four meals.
The company already has nearly 400 employees in New York and Phoenix, and it delivers meals to 28 states. This new, $77 million Series C round brings its total funding to $107 million, and it’s meant to fund Freshly’s nationwide expansion.
Nestlé USA led the round, with participation from previous investors including ighland Capital Partners, Insight Venture Partners, White Star Capital. And if you hear the word “Nestlé” and think chocolate (maybe an odd fit for a health food startup) keep in mind that the company actually operates 2,000 food and beverage brands.
“The traditional food model is shifting and we continue to see an increase in more health-conscious consumers who are seeking new options and services that fit easily and effortlessly into their lifestyle,” said Jeff Hamilton, President of Nestlé Foods Division, in the funding release. “Freshly delivers on this need, with an easy-to-use and differentiated brand experience that immediately makes an impact in helping their customers eat healthier each week.”