AI-powered grocery service Hungryroot raises $40M

17 Jun 2021

Online grocer Hungryroot raised $40 million in a Series C funding round, according to a press release from the company. The funding round was led by private equity firm L Catterton, and Hungryroot said the funds will be used to “substantially” increase the number of groceries and recipes it offers, grow the team, invest in automation technology and optimize its personalization algorithm.

Hungryroot focuses on personalization of grocery service through its AI-powered platform that curates shopping carts for individual customers. According to the company, it’s personalization service not only saves consumers two to three hours per week in shopping time, but it manages to do so while increasing revenue. Compared to other grocery delivery services, the average customer average customer spending 64% more on Hungryroot in their first five months.

AI-powered grocery service Hungryroot raises $40M
Courtesy of Hungryroot

This model has made Hungryroot profitable. The company said that it has been profitable since 2020 and is on track to make $175 million in revenue this year. Next year, the company said it is forecasting $300 million, making it one of the coveted technology startups that is running in the black rather than relying on investor dollars to keep it afloat.

Part of the success for Hungryroot comes from its subscription services that can be tailored to specific diets. From an array of emerging brands in its store to the service’s ability to provide individual nutritional support through meal planning, Hungryroot has employed its proprietary predictive technology to deliver both groceries and recipes to individuals making it into a one-stop-shop for busy consumers.

Its model is similar to that of meal kits where shoppers receive weekly deliveries based on their preferences, but this online grocer takes things a step further by providing an end-to-end grocery shopping experience rather than simply providing the ingredients for individual meals. In addition to simplifying grocery shopping, the service has also been able to take advantage of the surge in popularity of online grocery shopping.

The pandemic has altered the concept of shopping. What was once a trip to a brick-and-mortar store has become a digital interface where one’s weekly dietary needs can be filled with the click of a button. While many places are beginning to reopen, shopping online appears to be here to stay. A study by Mercatus and research firm Incisiv predicts that online grocery sales will double their current market share and account for 21.5% of total U.S. supermarket sales.

With such a rosy outlook, investors have poured into the space, and services such as Good Eggs, Weee and Imperfect Foods have announced influxes of funding in recent months. Hungryroot itself raised $35 million since its founding in 2015, and this recent funding announcement more than doubles that sum. The company is now valued at $750 million, Bloomberg reported.

Related news

NutriScore algorithm update a ‘step in right direction’

NutriScore algorithm update a ‘step in right direction’

7 Sep 2022

Campaigning organisation Foodwatch International is hailing the update to the NutriScore algorithm as a “step in the right direction” but says there is still space for further improvement.

Read more 
Are new WHO sweeteners guidelines ‘a disservice’ to public health?

Are new WHO sweeteners guidelines ‘a disservice’ to public health?

6 Sep 2022

New draft recommendations from the World Health Organization (WHO) warn that zero-calorie sweeteners should not be used to help weight control or reduce the risk of noncommunicable diseases’ (NCDs) – sparking mixed reactions from industry groups.

Read more 
How the Ukraine crisis may affect the food chain transition

How the Ukraine crisis may affect the food chain transition

2 Sep 2022

From supply issues to price surges, the impacts of the Russo-Ukrainian war on the global food value chain are significant. What pain points has this crisis exposed, and what should the response be?

Read more 
Canadian authorities report titanium dioxide is safe in food, in the face of EU ban

Canadian authorities report titanium dioxide is safe in food, in the face of EU ban

1 Sep 2022

Health Canada joins the UK’s Food Standards Agency in concluding that titanium dioxide is ‘safe to consume’, putting it squarely at odds with recent safety assessments in Europe that led to a ban of the ingredient.

Read more 
Most food businesses are placing inflationary costs on consumers, survey finds

Most food businesses are placing inflationary costs on consumers, survey finds

31 Aug 2022

Consumers are being hit with product price increases as manufacturers pass on higher costs to the public. But with some major food manufacturers registering profits, is a public backlash on the cards?

Read more 
Hyperlocalisation promotes food system resilience and diversification

Hyperlocalisation promotes food system resilience and diversification

30 Aug 2022

Climate change action and new technologies are driving a rise in hyperlocalisation throughout the global food chain, improving the industry’s adaptability and ability to meet consumer demands for greater choice.

Read more 
Tackling the rise of antimicrobial resistance

Tackling the rise of antimicrobial resistance

29 Aug 2022

As the 2030 goal of halving antimicrobial use edges closer and a 2022 regulation is brought in to reduce antibiotic use on farm animals, the food industry is loudening its calls for action amid the increasing resistance to antimicrobials.

Read more 
WWF report slams Europe’s damning effect on the global food system

WWF report slams Europe’s damning effect on the global food system

26 Aug 2022

Europe may not be helping, but in fact hindering the global food system by inciting gross environmental, societal, and fiscal harm, a recent WWF report shows. Consumers however are hungry for change.

Read more 
Researchers develop automation method to isolate volatile food ingredients

Researchers develop automation method to isolate volatile food ingredients

25 Aug 2022

A research team in Germany has applied automation to a long-standing method to isolate volatile food compounds, creating advantages over the existing manual process, which include food manufacturers’ potential to increase yields and lower the contamina...

Read more 
New partnership strives to improve cocoa farming in Ivory Coast

New partnership strives to improve cocoa farming in Ivory Coast

24 Aug 2022

Conseil du Cafe-Cacao and IDH’s Sustainable Trade Initiative launch a new programme, Cocoaperation, to support cocoa farming and improve the livelihoods of cocoa producers.

Read more