To meet the needs of regular corporate clients, the company is eyeing a larger share of what CEO Jeff Grass sees as a $65 billion catering market
FREMONT, CA: Hungry Marketplace, a startup connecting the independent chefs to corporations requiring the catering service, raised 420 million in Series B round of financing. The funding was led by Evolution VC Partners and former Whole Foods co-CEO Walter Robb. Other investors in the round of funding were actor Kevin Hart, rapper Jay-Z, and several other NFL players. The total funding of Hungry reached $32.6 million after the new round.
The company had previously raised $8 million in 2019 from the likes of hip-hop mogul Jay-Z's Marcy Venture Partners, singer Usher, celebrity chef Tom Colicchio and local investors such as Sands Capital Ventures. It now operates in five cities after adding Austin, Texas, to its service list. To meet the needs of regular corporate clients, the company is eyeing a larger share of what CEO Jeff Grass sees as a $65 billion catering market.
"The plan that we have in front of us is very well defined for investors. I think we can build this to a billion-dollar business in the next few years," Grass said, adding that they work directly with chefs on pricing and provide all the delivery, logistics, and sales. "We are just scratching the surface of the opportunity." "You have this giant industry that's entirely served today by restaurants and traditional catering companies, neither of whom were ever designed around providing food for an office," Grass added.
Hungry provides a marketplace for those chefs who are at their initial stages or don't have their own restaurants' rent space in the autonomous commercial kitchens. The Washington D.C.-based company connects the chefs to companies that need catering by handling all the logistics and letting the chefs explore and experience.
"The business has become very predictable, very repeatable, and very portable across geography. And that's what gives us lots of confidence," Grass said. "We built a better model, and I say it's showing in terms of client satisfaction rates and client retention rates."
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