Organic meal delivery service Sun Basket has raised $15 million in a series C round led by Sapphire Ventures, with participation from a number of other VC firms and angels including Baseline Ventures, PivotNorth Capital, Accolade Partners, Founders Circle Capital, Shea Ventures, Relevance Capital, Vulcan Capital, and Filter 14.
Founded out of San Francisco in 2014, Sun Basket delivers organic pre-measured ingredients and recipes to people’s homes, with options for vegetarian, paleo, and gluten-free. The company had raised more than $31 million before this latest round — including an identical $15 million round eight months ago — and with its latest cash injection it plans to open a third distribution center in the Midwest, which will open its service to 98 percent of continental U.S. Sun Basket says it currently serves 80 percent of the country.
With Sapphire Ventures on board as an investor, Sun Basket is in good company — Sapphire has previously invested in Box, Apigee (acquired by Google), Aepona (acquired by Intel), Fitbit, LinkedIn, and Square. “As we scale the business in 2017, we are excited to have Sapphire Ventures on board, given its track record of helping numerous Silicon Valley companies grow exponentially while simultaneously maintaining strong unit economics and great product quality,” said Sun Basket CEO Adam Zbar.
Sun Basket is operating in a competitive space, with the likes of Blue Apron and HelloFresh nabbing more than $550 million in VC funding between them; other players including PeachDish, Plated, and Green Chef. But Sapphire Ventures’ partner Kevin Diestel reckons they’re betting on a company that can achieve “truly massive” scale.
“At the intersection of food, health, and technology, Sun Basket has the ability to redefine the purchase and eating habits of consumers, all through the click of a simple button,” said Diestel. “At Sapphire we look to invest in companies with the potential to achieve truly massive scale. We can’t wait to help Sun Basket as it continues its growth trajectory to become one of the largest food delivery companies in the nation.”