Similar companies to Munchery include Blue Apron, the 800-pound gorilla in the meal kit delivery business, and HelloFresh, which has more basic recipes and detailed instructions for newbie cooks.
Munchery's top competitors in the fresh ingredient delivery industry
|Company||Valuation||Total funding raised||Stage||DataFox growth Score|
|Blue Apron||$2 billion||$193 million||Private, Series D||1019|
|Munchery||$300 million||$124.4 million||Private, Series C||1008|
|Plated||Unknown||$56.4 million||Private, Series B||986|
|HelloFresh||$2.9 billion||$278.5 million||Private, Series F||871|
|Gobble||Unknown||$11.95 million||Series A||839|
|Home Chef||Unknown||$6 million||Series A||789|
|Chef'd||Unknown||$5.25 million||Series A||786|
Munchery has a twist on the recipe subscription service: it delivers meals cooked by local chefs that customers then reheat at home. Chefs choose the dishes and source the ingredients, and customers can order a few days in advance or up to that same afternoon. Munchery drivers then deliver the meals to customers' homes. Consumers have the ability to choose between 15-20 different entrees, which range in price from $8-$12 each. Buyers get a less expensive option than going to a restaurant, but get good-quality food and save the hassle of having to cook. And the chefs can actually earn more than they do at a restaurant kitchen: Munchery says that chefs can earn higher wages in the company-owned kitchens, as well as work flexible hours.
The company has raised a total of $124.42 million in funding, including $85 million in a May 2015 Series C round led by Menlo Ventures and Sherpa Ventures. It was founded in 2011 and is headquartered in San Jose. According to TechCrunch, Munchery was delivering up to 5,000 orders per day and experiencing 20% month-over-month growth in 2014.
The company is led by Tri Tran, CEO and co-founder; Conrad Chu, CTO and co-founder; Kris Fredrickson, VP of operations; and Nathaniel Faggioli, VP of finance.
About the fresh ingredient delivery industry
Subscription recipe and fresh ingredient delivery services evolved to meet the needs of people who enjoy cooking (or want to show off) but don't want to spend time grocery shopping. Fresh ingredient delivery services find a middle ground between labor-intensive home cooking, which can be intimidating for new chefs and difficult for carless urbanites, and going out for expensive, often unhealthy restaurant food. Capitalizing on millennials' excess income and prioritization of convenience and taste over cost, subscription recipe boxes have exploded in the past few years.
To date, the industry has raised over $650 million from investors including Andreessen Horowitz, Sequoia Capital, and Khosla Ventures, with the bulk of that funding coming after 2013. However, the landscape is already littered with the corpses of failed subscription recipe startups, including Chefday and Fresh Dish. Some argue that the food technology space is just another example of a tech bubble. However, given the current funding trends, DataFox expects companies in the subscription recipe industry to grow in the coming years.
Fresh ingredient delivery industry trends