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Daily news and analysis about the food tech revolution

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Food Tech News: Online Food Bank, Upcycled Cacao Fruit Bites, and $10M for Gluten-Free Snack Brand

If you feel like you’ve fallen behind in the fast-paced world of food tech, you’ve come to the right place. In this week’s Food Tech News roundup, we have stories on Feeding America’s new online platform, Costco’s partnership with Uber, a snack brand’s $10 million funding round, and one of the first companies to receive the Upcycled Food Certification.

Food bank launches online grocery ordering for those facing food insecurity

Feeding America is one of the largest food banks in the country, and this week the non-profit began offering online ordering. Called Order Ahead, food is ordered through a Feeding America network food bank or partner food on a smartphone, tablet, or computer. The order can then be picked up at schools, libraries, or a drive-thru distribution center. Certain markets will also be offering home delivery. Those requiring food assistance unfortunately might feel embarrassed or stigmatized, so offering an online platform allows for the option of being more discreet.

CaPao is one of the first companies to receive the Upcycled Food Certification

CaPao has created a snack product that is made from upcycled cacao fruit. The brand was developed in Mondelēz International’s SnackFuture innovation and venture hub, and this week announced that it is one of the first companies to receive the recently launch Upcycled Food Certification. After cacao beans have been extracted from the cacao pod, there is about 70 percent of the pod remaining goes to waste, and this remaining fruit is used in the snack product. CaPao sources this potential food waste from Cabosse Naturals, a food and beverage company that uses cacao pods to make various ingredients. Using the upcycled cacao fruit, CaPao produces three flavors of snack bites: mango cashew coconut, golden berry apricot chia, and cherry almond cocoa. The products are available for purchase on the company’s website and retailers in Southern California.

Photo by Henry & Co. on Unsplash

Costco partners with Uber to trial same-day delivery

Costco is currently trialing same-day grocery delivery with Uber at 25 Texas locations in Dallas, Houston, and Austin. Uber has announced that its drivers will be able to deliver groceries in minutes to a few hours. To use the service trial in Texas, customers must order at least $35 worth of Costco groceries and products. Costo currently also works with Instacart to offer same-day delivery.

Gluten-free snack maker raises $10 million

Quinn produces various gluten-free snacks, and this week the company secured $10 million in its Series B funding round. NewRoad Capital Partners led the round, and Echo Capital, Boulder Food Group, and Sunil Thakor also participated. The capital will be used for product innovation, company growth, and be put towards Quinn’s mission of supporting regenerative agriculture. Quinn uses gluten-free ingredients like sorghum, cassava, and corn for its pretzels sticks and chips, stuffed pretzels, and flavored popcorn. The company provides a map of where its ingredients are sourced and a list of farmers (who are taking steps to reduce their environmental impact) it buys from to provide transparency to consumers. Quinn’s products are available for purchase in approximately 10,000 retailers nationwide.

Will Gopuff’s (Second) Billion-Dollar Funding Round Make its Grocery Competition Go Poof?

In addition to delivering groceries fast, Gopuff is pretty speedy when it comes to raising big sums of money. Bloomberg and Axios both reported yesterday that Gopuff is raising an additional $1 billion in funding, according to sources familiar with the matter. This new money comes just months after Gopuff raised $1.5 billion in March, and will give the company a $15 billion post-money valuation.

Like others in the space, Gopuff operates a network of dark stores in the U.S. that deliver goods like groceries in 30 minutes, 24 hours a day. But unlike its competition here, Gopuff has raised a ton more money. If this latest round does indeed close next week, the company will have raised nearly $3.5 billion since 2015. By comparison, other speedy grocery services have far less funding: Gorillas has raised $335M, Fridge No More raised $16.9M, JOKR raised $170M, and Food Rocket raised $2M.

Gopuff is also a little different from its competitors in its value proposition. Those other services promise super-fast delivery of groceries in as few as 10 minutes. Because they deliver to a very limited radius, they can tailor their inventories to the particular tastes of the neighborhood they serve. But those services are also very small right now. Three are only in New York City (Gorillas, Fridge No More, JOKR), and two are in San Francisco (Food Rocket, Gorillas). Gopuff, on the other hand, has more than 300 facilities operating in 550 cities across the U.S. With another $1 billion, Gopuff can accelerate its expansion and grab market share before the competition can even get out of their hometown.

But speedy, on-demand grocery delivery will soon become commonplace in big cities, if you believe the CEO of Food Rocket. As such, we are starting to see these speedy grocery services start to differentiate. Food Rocket, for instance, is adding branded ready-to-eat meals and ghost kitchens to make even more types of delivery friendly meals. But there, too, goes Gopuff: the company has been hiring out kitchen staff and managers for its own ghost kitchen services so it can deliver its own meals.

Gopuff’s biggest competitor might actually be DoorDash at this point. DoorDash has a nationwide delivery network and infrastructure, is expanding aggressively into grocery, has a ton of money thanks to its IPO, operates its own growing line of delivery only DashMart convenience stores, and has its own ghost kitchen program. With another billion in the bank, Gopuff has the goods and the cash now to have a go at DoorDash.

I quipped on Linkedin earlier this week that it would be weird if your speedy grocery delivery service didn’t raise over $100 million. Given Gopuff’s furious fundraising pace, I might have to adjust my joke.

Plant-Based Cheese Company Nobell Foods Raises $75M

Plant-based cheesemaker Nobell Foods announced a $75 million Series B fundraise and launched out of stealth mode this week.

The round was led by investment group Breakthrough Energy Ventures and included participation from new investors Hillhouse Capital Group and Footprint Coalition. Existing investors AgFunder, Andreesen Horowitz, Mission Bay Capital, Fifty Years, New Crop Capital, Germin8 Ventures, former Muse frontman Matt Bellamy, and Pear VC also took part. Nobell has now raised $100 million in total, according to Fast Company, which was first to report the news.

Nobell will use the new funds to commercialize its first plant-based cheese products, including mozzarella, which the company makes from soybeans that are genetically edited to produce casein. Casein, a protein unique to milk, is a major contributor to the texture, taste, and melt-a-bility of cheese. It’s also an element most plant-based cheeses out there lack, which is why so many fall short of the mark when it comes to adequately mimicking the real thing. 

Nobell effectively trains soybeans to produce this casein. The company has been quietly developing this method for the last four years, and says it could wind up being cheaper than the costs of producing cheese using cow’s milk. 

Cheese comes with a heavy environmental footprint. As demand for dairy has increased, so too has the percentage of global emissions the sector produces. Cheese, in particular, is highly resource intensive. 

There are many, many plant-based cheese options out there. Most of them can’t replicate the taste, texture, and mouthfeel of dairy-based cheese yet, largely because they don’t contain the aforementioned casein.

However, Nobell isn’t quite the only company out there producing the protein from alternative sources, though it’s the only one using plants for the process. A company called New Culture uses genetically modified microbes like yeast to produce casein, training these microbes to make the protein. Alt-dairy company Perfect Day also uses genetically modified microbes. 

In a statement on the Nobell website, founder Magi Richani says that cheese is “the last frontier, the insurmountable thing” most consumers won’t get up. With Nobell, she aims to ensure these consumers don’t have to give it up and can still enjoy, stretchy, melty, tasty cheese without further compromising the health of the planet.  

Bbot Raises $15M Series A for its Restaurant Ordering and Payment Software

Restaurant ordering and payment processing platform Bbot announced today that it has raised a $15 million Series A round of funding. The round was led by CRV and follows a $4 million extension to its Seed round the company raised in January of this year. Bbot’s total amount of funding is now $22.3 million.

Broadly speaking, Bbot helps restaurants, bars, hotels, ghost kitchens and other hospitality establishments add in-venue and online ordering. The company offers a range of hardware tools such as tablets, scanners and printer controls, as well as a suite of software to enable contactless and online ordering and manage catering.

Bbot’s system uses QR codes, which restaurants can place on tables and customers can scan with their own phones to pull up the menu, order, and pay for items. While the QR code-based ordering isn’t new, it has gained much more attention over the last year because of its inherently contactless nature. In her recent 2021 Restaurant Tech EcoSystem market map, Brita Rosenheim predicted that these type of tools will become more important to restaurants, writing:

Stateside, we’ve increasingly been adopting mobile-first ordering and marketing strategies, but the mobile-only approach (often seen in Asia) wasn’t widely embraced before the pandemic. Now, whether via QR codes, apps or mobile web, there has been a huge shift towards mobile-optimized menus, ordering and payments which eliminate or reduce most employee/customer contact. This can help to improve the guest experience via increased speed and fewer errors. For fine dining, this also saves time/costs in printing and sourcing supplies for paper menus.

Bbot is just the latest bit of restaurant tech funding we’ve seen over the past month. 86 Repairs raised $7.3 million for its restaurant machine maintenance and repair service. Choco raised a whopping $100 million to digitize the relationship between restaurants and food suppliers. And Zenput raised $27 million to help multi-unit restaurants widely release and enforce operating procedures and health and safety protocols.

In its press announcement, Bbot said it has added more than 700 customers and reached 85 employees across 14 states over the last year. With its new funding, Bbot said it will create new POS and loyalty program integrations, and will focus on features for food halls and virtual brands. The company also plans to launch a self-service Bbot app store, so developers can integrate their apps with Bbot’s existing platform.

Shiok Meats Closes Bridge Funding Round, Plans R&D Facility for Cultivated Seafood

Cultured seafood company Shiok Meats has raised an undisclosed amount of investment in a bridge funding round from Woowa Brothers Asia Holdings, CJ CheilJedang Corporation, and Vietnamese-based seafood exporter Vinh Hoan Corporation. This brings Shiok Meats’ total funding to date to $30 million, according to a company press release. 

The round also included existing investors IRONGREY, Big Idea Ventures, Twynam Investments, Henry Soesanto, The Alexander Payne Living Trust, Beyond Impact Vegan Partners, Boom Capital Fund, Toyo Seikan Group Holdings, and Mindshift Capital.

While Shiok Meats did not disclose the exact amount of the bridge round, it likely clocked in around the $10 million mark, a figure based on publicly available information about the company’s financials.  

The new funds will go towards building an R&D production facility in Singapore, where the company is based. To date, Shiok Meats has developed cultivated shrimp and lobster, and aims to eventually produce those products at scale via its production facility.

Several other cultivated protein companies, including Future Meat, MeaTech 3D, and fellow cultured-seafood company Willdtype, have also announced production facilities over the last few months. BlueNalu, another seafood-focused company, announced a production facility back in 2020 that is slated to be operational towards the end of this year.

For its part, Shiok Meats says it plans to launch in Singapore by 2023 at the latest. The company received the prestigious Startup SG Tech Proof-of-Value grant, which helps companies fast-track development of their technologies/products and which could help Shiok Meats get to market faster.

In Singapore, at least, Shiok already has competition. San Francisco, California-based Eat Just nabbed the world’s first-ever regulatory approval to sell cultivated meat from Singapore and is currently selling its “chicken” at restaurants in the city-state.   

EBar Raises £670,000 for its Mobile, Automated Beer Vending System

EBar, the Aberdeen, U.K.-based beer vending machine company, announced today that it has raised a £670,000 (~$916,000 USD) equity round of funding. In an email to The Spoon, EBar Managing Director Sam Pettipher said that of the new money, £150,000 (~$205,000 USD) came via equity crowdfunding via the Seedrs platform, £300,000 (~$410,000 USD) came from an Irish events consortium, and the rest came from various investor groups. This brings the total amount raised by EBar to £1.4 million (~$1.9M USD).

Built for large events like soccer matches, festivals, concerts and more, EBar makes high-volume automated beer vending machines. EBar machines offer just two drink options, feature a touchscreen for ordering and can pour a beer in under 30 seconds. EBars are also mobile and meant to move around wherever there are events to create what the company calls beer as a service. Instead of leasing the machine, EBar charges each venue a commission on sales, so there is no upfront cost for set up or installation.

EBar launched its equity crowdfunding campaign earlier this year with the goal of raising £275,001 (~$387,827 USD). Pettipher said the company has closed the equity crowdfunding campaign and has moved on to the execution phase of its business, getting fleets of units out and growing the team.

EBar is part of a growing movement towards automating beer service, especially at large events. Macco Robotics, Revolmatic and Hop Robotics all make automated beer pouring machines that can dispense beers in seconds. This type of automation could potentially be huge for events and venues because a robot can churn out hundreds of drinks in an hour without stopping. Human bartenders could then shift their focus to selling more complex (and expensive) mixed cocktails, and would allow event attendees to spend less time in line for drinks.

The bigger question hanging over all of these services isn’t the functionality of the technology, it’s when large events will be able to come back in full force. With the COVID-19 Delta variant flaring up around the world, the pandemic is far from being over. Sporting events and concerts are making a comeback, but there is the constant threat of them being shut down again in the fight against the virus.

Delivery Service Swiggy Raises $1.25B

Indian delivery service Swiggy has closed a $1.25 billion round of Series J funding led by Softbank Vision Fund 2 and Prosus Ventures, according to TechCrunch. Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac participated in the fundraising, as well as existing investors Accel Partners and Wellington Management.

The “heavily oversubscribed” round includes the $800 million the company raised earlier this year. To date, Swiggy has raised $2.9 billion in funding and has a post-money valuation of $5.5 billion.

Like its rival Zomato (who filed to go public in April 2021), Swiggy is best known across India for its restaurant food delivery service. However, Swiggy’s Chief Executive Sriharsha Majety said that this new funding will also help accelerate its non-food categories in addition to traditional restaurant delivery. “I believe the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users,” he told TC.

In 2020, Swiggy expanded its service to include delivery of grocery, household items, and laundry, among other categories. 

Zomato, too, has branched out beyond restaurant delivery with its Zomato Marketplace that connects restaurant owners with suppliers of non-food items. The company raised $1.3 billion in its IPO recently. 

The move to offer more than just restaurant meals is similar to developments in other parts of the world. A chief example is DoorDash, the U.S.-based company that added grocery services in 2020 and has also since expanded its “dark convenience store” service. Uber has also started offering non-restaurant food delivery.

In addition to the major companies, an entirely new pack of speedy delivery services has emerged and promises basic food and household items in a fraction of the time it takes a restaurant meal to get cooked and delivered.

Speedy delivery has yet to reach India in any major capacity. When it does, it will add yet-more competition to the already uber-competitive Indian delivery market.

Aromyx Raises $10M for its Digital Scent and Taste Technology

Sensory data company Aromyx announced today that it has raised a $10 million Series A round of funding led by Rabo Food&Ag Innovation Fund and SOZO Ventures, with participation from existing investors Ulu Ventures, Radicle Growth, Capital Energy and Merus Capital.

Aromyx creates sensing technology that digitizes and quantifies information from the human nose and tongue receptors. The company describes its technology on its website like this:

Through our sensor products, human receptors respond to a given odor or flavor sample and then relay information about its quality—such as whether it’s pleasant, contaminated or toxic. Our algorithms measure and quantitatively represent the raw data in the form of digital signatures. These signatures are uploaded into a central scent cloud, which resembles a comprehensive library of the brain’s own smell and taste associations.

Aromyx says it has created the largest database of human receptors, ingredients/chemicals and real-world word descriptions. Companies developing new food and beverages can test their products and ingredients with these electronic receptors to understand how a person would perceive that product. So a new snack chip placed in Aromyx sensory robot (see above) would deliver results like “smokey,” or “buttery,” or “grassy,” and the product makeup could then be adjusted to achieve the desired result.

It may seem easy to equate Aromyx with other digital olfactory startups in the space such as Aryballe and Koniku, each of which make electronic “smelling” devices. But Aromyx is also akin to flavor combination and discovery platforms like Spoonshot, which breaks down flavors and labels food components to help CPG companies figure out novel ingredient combinations for new products. In its press announcement, Aromyx said that it tested more than 100 products for its customers in 2020 and will triple that number in 2021.

Aromyx said that it will use its new funding to increase its capacity and automation capabilities, improve its identification algorithms and hire out its lab and software teams.

Zenput Raises $27M to Manage Operations for Multi-Unit Restaurants

Restaurant operations tech company Zenput has raised $27 million in Series C funding. The round was led by Golub Capital with participation by existing investors, including Jackson Square Ventures, MHS Capital, and Goldcrest Capital. It brings Zenput’s total funding to date to over $47 million, according to a company press release. 

San Francisco-based Zenput calls its tech an “operations execution platform.” With it, multi-unit restaurant operators, grocery stores, and convenience stores can release new operating procedures and health and safety protocols and enforce them across all units. Businesses can update all of their locations at the same time whenever a new policy or procedure gets rolled out. Zenput can also track how well each unit is complying with standards and procedures. The system can also be used to distribute new promotional campaigns across all units. 

Leading brands in the restaurant and convenience store industries, including Chipotle, Five Guys, P.F. Chang’s, and 7-Eleven, are current customers of Zenput.

Zenput says it has “approximately” 100 percent revenue growth over the last year and saw daily activities on the platform increase by 150 percent per store. The platform’s apparent popularity makes sense, given that restaurants have had to continually change and update policies in order to accommodate COVID-19-related restrictions and regulations. “The challenges of the past year really underscored for our customers the criticality of being able to manage the complexities and overall execution of work in one central place, especially when an operator might have dozens, hundreds or thousands of locations,” Vladik Rikhter, Zenput’s CEO and cofounder, said in a statement.  

He added that the new funds will largely go towards building new products that can address additional areas of operations. 

Zenput currently serves over 500 customers across 50,000 locations in 40 different countries. The funding will also go towards expanding this customer base. 

Collectiv Food Raises $16.3M for B2B Food Supply Distribution

Collectiv Food, a London-based B2B food marketplace, announced today that it has raised £12 million (~$16.3 million USD) in Series A funding. The round was led by VNV Global, along with VisVires New Protein, Octopus Ventures Norrsken VC, as well as existing investors Partech, Colle Capital and Mustard Seed. This brings the total amount of funding raised by Collectiv Food to £15.8 million (~$21.5 million USD).

Currently servicing Europe, Collectiv operates a network of thousands of food producers that supply items such as meat, seafood, plant-based proteins, dairy, beverages an more. Collectiv’s marketplace allows restaurants, hotels, caterers, meal kits companies, ghost kitchens and more buy food directly from the producers, cutting out the wholesaler middle man and their markup.

In addition to promising cheaper prices for food, Collectiv says it has developed a greener, more sustainable approach to last-mile delivery. Collectiv operates a number of “Points of Delivery” (PODS), which are like chilled shipping containers placed in underutilized parts of a city. Instead of big delivery trucks all coming from a centralized distribution center and driving long delivery routes through a city, Collectiv’s system intelligently routes smaller delivery vehicles from this network of PODS for last mile delivery. The company says this decentralized distribution results in 50 percent less CO2 emissions than traditional last mile shipping methods.

Collectiv is among a number of B2B startups looking to improve our food supply chain. Other players include IFoodDS, which offers a cloud based system that provides more transparency into fresh food supply chains, as well as Shelf Engine and Afresh, which help food buyers better predict inventory needs.

In a press announcement sent to The Spoon, Collectiv said it will use its new funding to further develop its delivery and sourcing models, hire out its team and continue its expansion across Europe.

No Foolin’, JOKR Raises $170M Series A for Speedy Grocery Delivery

JOKR is the latest speedy grocery delivery startup to have raised a nine-figure round of funding. The company announced today that it has raised a $170 million a Series A round led by GGV Capital, Balderton Capital and Tiger Global Management. Activant Capital, Greycrot, FJ Labs, Kaszek, Monashees and HV Capital also participated.

Like other startups in the space, JOKR operates a network of small, delivery-only grocery stores that carry a limited number of items and have a small delivery radius. With this model, JOKR can tailor inventory to a specific neighborhood, sell local products (i.e., bakery goods), and deliver within 10 to 15 minutes of the customer placing an order.

JOKR’s big fundraise comes just three months after it started operations and a month and half after it launched its grocery delivery services in New York City. According to a press announcement sent to The Spoon, JOKR said that since it started operations it has opened up a new hub roughly every day and now operates 10 hubs in New York, and 100 hubs across nine cities including São Paolo, Brazil; Mexico City, Mexico; Bogota, Colombia; Lima, Peru; Warsaw, Poland; and Vienna, Austria.

Of course, JOKR isn’t the only speedy grocery delivery service bringing in big funding. In fact, it would be odd if JOKR hadn’t raised more than $100 million. Gopuff raised $1.5 billion in March to grow its delivery service. Last month Germany’s Flink raised $240 million, and Turkey’s Getir raised $550 million (after raising $300 million in March). Germany-based Gorillas raised $290 million in March, launched its own U.S. operations in NYC at the end of May, and is already expanding to San Francisco, Los Angeles and Chicago.

Vitaly Alexandrov, CEO of the San Francisco-based Food Rocket speedy grocery service, recently told me that in order for his business to work, one hub needs to be able to service 50,000 households. That means that at some point not too far off, all of these services are going to be vying for the same markets. Alexandrov said that eventually 10-minute grocery delivery will become a commodity, which is why Food Rocket is looking to differentiate itself with ready to eat meals, ghost kitchens and will eventually open up its logistics and delivery platform to other retailers. Gopuff too, is diversifying by getting into the ghost kitchen business as well.

Despite all this funding, we don’t yet know if or how consumers will take to this new, utility-style model of grocery shopping. Many of these services don’t have order minimums or delivery fees, but will that be sustainable as they scale? Will consumers place large enough orders to keep these businesses going or will these services burn out a la Kozmo.com?

We’ll learn the answers to these questions over the coming months but one thing we know already: Most of these startups won’t fail because of a lack of funding.

Nature’s Fynd Raises $350M Series C for its Microbial Protein

Nature’s Fynd, which makes protein from microbes that originated in geothermal springs of Yellowstone National Park, announced today that it has raised a $350 million Series C round of funding. The round was led by SoftBank’s Vision Fund 2, with participcation from new investors including Blackstone Strategic Partners, Balyasny Asset Management, Hillhouse Investment, EDBI, SK Inc. and Hongkou, as well as other existing investors. This brings the total amount raised by Nature’s Fynd to more than $500 million.

The company’s protein is called Fy, and it’s a fermented fungi protein derived from the Fusar­i­um strain flavolapis microbe. Because Fy is grown through fermentation, the cultivation of the protein requires less land, water and energy than traditional agriculture. Fy is a complete protein with 9 essential amino acids, and it can be used to make alternative meat and dairy products. In February of this year, Nature’s Fynd announced its first two Fy-based products: a dairy-free cream cheese and a meatless breakfast patty. The company also makes a dairy-free yogurt that was eaten on camera by Bill Gates (a Nature’s Fynd investor) and Anderson Cooper during a segment on 60 Minutes earlier this year.

Fermentation has been dubbed the third pillar of alternative protein, alongside cell-based and plant-based protein. We have seen a wave of startups using fermentation technology to bring variety of animal-free products to market. Perfect Day and Remilk use fermentation to create dairy proteins. Nourish Ingredients ferments yeast to make plant-based fats. SuperBrewed ferments microbes to create a vegan protein powder than can be used in plant-based cheese and milks. And Better Meat Co. recently launched its own fermentation production facility to create its mycoprotein-based Rhiza ingredient.

All of this activity has also helped attract plenty of funding over the past year and a half. According to data from the Good Food Institute and Pitchbook, fermentation startups received $590 million in funding in 2020. In addition to Nature’s Fynd’s haul announced today, last month Motif Foodworks, which uses microbial engineering and precision fermentation to create novel food ingredients, raised $226 million.

Nature’s Fynd said it will use its new funding to expand its production capacity, add new products to its lineup, and set the stage for its international growth.