Home Chef, a Chicago-based meal kit delivery service, announced it has secured $40 million in Series B capital through an investment led by Greenwich, Connecticut-based L Catterton, the largest consumer-focused private equity firm in the world. This funding will allow Home Chef to sustain its rapid growth in the $1.5 billion US meal kit industry.
Home Chef is a meal kit delivery service with fresh ingredients and easy-to-follow recipes available nationwide. The company offers 10 dinners along with a breakfast, smoothie, and fruit basket that can be selected from a new menu every week. Home Chef’s step-by-step instructions allow customers to create delicious home-cooked meals in approximately 30 minutes.
Home Chef was founded in 2013 and previously raised $17 million in several venture funding rounds. The startup has grown its shipment volume by over 150x since the beginning of last year, and is now delivering more than 1.5 million meals per month to over 97 percent of the country.
Supporting this growth and dramatic expansion, the Home Chef team now includes more than 600 employees. The company’s diverse menu of familiar, easy to prepare recipes has catapulted its success, allowing Home Chef to become one of the largest brands in an increasingly popular category.
“In today’s fast-paced world, demanding schedules get in the way of prioritizing what we are feeding our families and ourselves,” said Pat Vihtelic, founder and CEO of Home Chef. “At Home Chef we strive to provide great meals, the most variety, and superior flexibility at an affordable price to accommodate our customers’ busy lives. As a result, we are experiencing tremendous growth and this round of investment will enable us to achieve our growth goals.”
Home Chef recently announced the opening of a new distribution facility near Atlanta, Georgia, which combined with its operations in Los Angeles and Chicago, provides nationwide distribution. The company also recently began piloting meal plans targeted at families of up to five that feature lower cost, family-friendly recipes.
“We are impressed by Home Chef’s rapid expansion and growth, demonstrating their ability to capture an increasing share of this exciting category,” said Michael Farello, managing partner of L Catterton Growth Fund. “Home Chef’s ability to provide consumers a wide variety of home-cooked favorites—at prices that are often lower than the cost of separately purchased ingredients—is a clear recipe for success.”
L Catterton, formed in 2016 through the partnership of Catterton, LVMH and Groupe Arnault, operates multiple funds out of seventeen offices across five continents, with $5.5 billion of assets under management. The firm invests in all major consumer segments, including: Food and Beverage, Retail and Restaurants, Beauty and Wellness, Fashion and Accessories, Consumer Products and Services, Consumer Health, and Media and Marketing Services, as well as real estate projects anchored by luxury retail.
Home Chef’s culinary team innovates a new menu that includes 10 dinners every week. The company also offers customers the opportunity to fully customize their weekly delivery, selecting any combination of dinner options plus add-on items such as breakfasts, smoothies and fruit baskets. Once an order is placed, customers receive fresh pre-portioned ingredients, along with clear step-by-step instructions, all delivered straight to their doors weekly.
Home Chef enables customers of all cooking abilities to prepare meals for only $9.95 per serving. Its family plans offer reduced per serving pricing beginning at $8.33 per serving, and shipping is free for orders over $45.