Category: Uncategorized

VCs Hunt for a Food Delivery Business That’s Sustainable

Over the last year, meal-delivery businesses have mostly served up pessimism. Several have closed their doors, the most recent being Maple, a venture-backed New York startup that shut down last week. Others, including Munchery Inc.Postmates Inc. and Zesty Inc., have cut workers. Sprig Inc., which is backed by Accel and other venture capitalists, is burning through $850,000 a month and is seeking a buyer, said people familiar with the matter.

 

But VCs aren’t giving up on the dream of getting food delivered cheaply through an app. They’re just trying to find ways to do so with fewer subsidies, or even profitably. One promising niche is targeting the hungry office worker. Investors recently put $30 million into Eat Club Inc., which delivers premade lunches in the San Francisco Bay area and Los Angeles. The company, which said it’s profitable, plans to use the money for an expansion to New York.

Eat Club offers similar options to Munchery or Sprig, with about 20 entrées per day, but only delivers to offices with 20 or more employees. Workers can order from an app or website. By delivering an office’s meals together, the company estimates it costs 90 percent less per dish compared with on-demand startups. Eat Club said its couriers drop off 20,000 meals a day, mainly to midsized technology companies such as Flipboard. Eat Club declined to say how many corporate customers have signed up but said it expects to generate $50 million in revenue this year.

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EAT Club Raises $30M Series C to Accelerate Expansion


EAT Club
, the fastest-growing provider of corporate lunch programs, announced today that it raised a $30 million Series C round, led by a strategic investor, Sodexo, the worldwide leader in Quality of Life Services, with participation from existing investors August Capital and Trinity Ventures. The $30 million investment will fund expansion to New York City and broaden the company’s existing footprint in the San Francisco Bay Area and Los Angeles.

EAT Club is a Silicon Valley startup that is revolutionizing the way people eat at the office at thousands of companies in California today. The company sets itself apart from the overcrowded food delivery segment with a unique logistics model driven by its own proprietary technology, providing offices with individually selected employee meals at scale. Today, EAT Club serves tens of thousands of individual meals per day with a 99.7% on-time delivery rate, and is generating a profit with healthy contribution margins, a measure of success others have not been able to achieve in this large and growing segment.
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Frontier Car Lands $22M to Disrupt Emerging Markets Car Sales


European founders, adept at launching startups which cross many international borders are fast ganging a reputation for launching in emerging markets. In countries where markets are often still very chaotic, there remains a host of opportunities.

That’s evidenced by the news today that the Frontier Car Group, which builds and runs marketplaces for used cars in emerging markets, has closed a $22 million investment, which was co-led by Balderton Capital, EchoVC+ and TPG/Satya. Also included was NEA, Tekton Ventures, Partech Ventures and “a few large global family offices” according to their statement.

Frontier now has operations in Chile, Mexico, Nigeria, Pakistan, Turkey but operates out of Berlin, with 200 employees. It’s going to use the cash to expand into Chile, Mexico, Nigeria, Pakistan and Turkey.

In a statement Sujay Tyle, co-founder and CEO of Frontier said: “The automotive sales sector is fundamentally broken in top-tier emerging markets around the world. Despite massive consumer demand, there is no good way for people to sell their cars efficiently for a fair price. Our vision is to reinvent how the used automotive sales sector works in global emerging markets through technology and infrastructure creation.”
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Realty-Tech Startup BroEx(Okutech) Raises Series A Funding


Gurgaon-based Oku Tech Pvt Ltd, which operates a mobile collaboration startup for real estate brokers under BroEx, has raised Series A round of funding from existing investor Lightspeed Venture Partners and a clutch of new investors. The startup raised Rs 21.37 crore ($3.22 million) from Blume Ventures, Lightspeed, Tekton Ventures, GrowX Ventures and CyberAgent Ventures, according to VCCEdge, the data research platform of VCCircle.

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