Burnaby meal kit delivery service company Fresh Prep has secured a whopping new round of financing that will mean the hiring of more people and continue work towards a zero-waste goal.
In all, the company raised $21 million in a Series B financing round. Led by Vancouver-based private equity firm Yellow Point Equity Partners, along with support and participation from Renewal Funds, the funds raised over this six-year-old company’s history is over $35 million.
“We were delighted to find one of the most innovative players in the meal kit delivery industry right here in our backyard,” said Dave Chapman, managing partner of Yellow Point, in a statement. “Its substantial growth to date has been underpinned by the management team’s commitment to their values of local sourcing, sustainability and pleasing their customers. We believe these values, exemplified by the company’s innovative Zero Waste Kit and carbon neutrality commitment, will resonate with customers across the country. We are enthusiastic to be partnering with this special local business in its next phase of growth.”
Burnaby-raised childhood friends and founders Becky Brauer, Dhruv Sood, and Husein Rahemtulla went from creating recipes in their home kitchen to now preparing meals for tens of thousands of customers across B.C. out of their 60,000-sq.-ft. production space.
Last year, the company secured Series A funding, which facilitated innovation and talent acquisition, with the business growing to over 350 employees within the province. As the company grows, one of its core values is to support local businesses and benefit the communities they operate in.
“Providing local and high-quality food has been a key ingredient to our growth,” says Dhruv Sood, co-founder and co-CEO at Fresh Prep. “By partnering with local suppliers and businesses, the food travels fewer miles and is fresher, resulting in a more premium service delivered to our customers at a lower price.”
Fresh Prep also works with other local suppliers to provide additional items such as smoothies, baked goods, snacks and more within their online marketplace to provide additional options to customers.
“Post COVID-19, we believe that our customers’ food preferences and cooking habits will remain focused on home-cooked meals and supporting local suppliers,” says Becky Brauer, co-CEO and co-founder of Fresh Prep. “With the support of our investors, we are ready to grow to meet customers’ needs across the country.”
Funds from this financing round will go towards hiring more talent as well as service enhancements for the rollout of Fresh Prep’s 100% reusable meal kit, which will curb the usage of single-use plastics in Fresh Prep meal kits.
