San Francisco food delivery startup Munchery raises $28M in Series B funding
Online food delivery service Munchery Inc has secured $28 million in its Series B financing with Sherpa Ventures as lead investor. Existing investors e.ventures and Menlo Ventures also participated in the round, according to The Wall Street Journal (WSJ).
Shervin Pishevar from Sherpa Ventures said of the startup: "At this point, Munchery is the largest restaurant in the world if you go by the number of orders it's doing in San Francisco alone from one kitchen."
Angel investors such as Kogi BBQ chef Roy Choi and actor Jon Favreau also contributed to this funding round. Munchery will use the new capital to expand into Seattle, and other places in and outside of the US. To date, the startup has raised a total funding of $32.21 million, the report detailed.
Munchery employs its own chefs and produces its own food to address the demand from its customers. Its unique order-and-change management system lets people change a detail of their order without the need to connect to the kitchen. Each order costs $9 to $13, plus a $4 delivery charge per order, regardless of the number of meals. The food is partly cooked to prevent it from being soggy and customers have to heat them at home, the report explained.
For every meal that a customer orders on Munchery's site, one meal is donated to the San Francisco and Marin Food Bank, WSJ added.