SAN FRANCISCO – Sun Basket, a maker of organic healthy meal kits, announced a Series C investment of $15 million led by Sapphire Ventures. Additional investors in the round include Baseline Ventures, PivotNorth Capital, Accolade Partners, Founders Circle Capital, Shea Ventures, Relevance Capital, Vulcan Capital, Filter 14, and angel investors.
Founded in San Francisco in 2014 by Webby-winner Adam Zbar and San Francisco’s James Beard Award-winning Chef Justine Kelly, Sun Basket is an innovative healthy cooking service, which delivers the best organic, pre-measured ingredients and easy-to-cook, delicious recipes weekly to your door.
Sun Basket reported record growth in 2016, increasing revenues 1,300 percent and its employee base from 100 to 700. The company plans to utilize the new funding to open its third distribution center in the Midwest, which will make Sun Basket accessible to 98 percent of the continental United States. Given Sun Basket’s highly-positive unit economics, strong margins, and industry-leading retention rates, Sun Basket has been able to accomplish this growth in a highly capital-efficient manner. With this new round, the company will have raised a total of $43 million in funding.
“Sun Basket’s values of health, sustainability, and personal choice are really resonating with consumers, resulting in the company growing $80 million in annual run rate (ARR) since Labor Day 2016,” said Adam Zbar, CEO of Sun Basket. “As we scale the business in 2017, we are excited to have Sapphire Ventures on board, given its track record of helping numerous Silicon Valley companies grow exponentially while simultaneously maintaining strong unit economics and great product quality.”
Sapphire’s partnership brings a wealth of experience in scaling technology giants, including FitBit, Square and LinkedIn, to name a few. With the investment in Sun Basket, Kevin Diestel, principal of Sapphire Ventures, will join the company’s board of directors. Sapphire Ventures currently manages over $2.4 billion in capital and has orchestrated 41 IPOs and mergers and acquisitions since 2011.
“At the intersection of food, health and technology, Sun Basket has the ability to redefine the purchase and eating habits of consumers, all through the click of a simple button,” said Diestel. “At Sapphire we look to invest in companies with the potential to achieve truly massive scale. We can’t wait to help Sun Basket as it continues its growth trajectory to become one of the largest food delivery companies in the nation.”