Meallogix, an enterprise resource planning startup focusing on the meal prep sector, announced today via emailed press release that it has closed a $1.7 pre-series A round of funding. The round was led by Tech Coast Angels, with participation from Spark Growth Ventures. This brings the total amount raised by the company to $3 million.
Meallogix provides a software platform that helps take over the more administrative tasks associated with running a meal prep or meal kit company. The Meallogix software handles things such as shopping lists, prep lists, recipe management, meal planning, food labeling, supply costs and meal delivery logistics.
Meal kit companies experienced a resurgence during the pandemic last year. Unable to dine out and forced to eat at home more often, people turned to meal kit and meal prep companies to mix things up. During the height of the pandemic’s first wave in 2020, sales of meal kits doubled year-over-year.
But the question now is how much of the audience that flocked to meal kits will stay with them now that vaccines are aggressively rolling out. When restaurants are re-opened fully and people are able to move about more freely (not to mention the warm months of summer encouraging outdoor activities), will they still be interested in a meal kit subscription?
Meallogix is obviously still bullish on the meal kit and prep sector. In its press announcement today, the referred to a Nielsen statistic saying that 50 million people participate in meal kit and meal prep subscription, and that the market is projected to double to $11.6 billion by 2022.
Meallogix says it will be using its new funds to build out the front and back end of its software, expand its reach here in the U.S., and launch an online learning platform specific to the meal prep sector.