Sign up to receive 5 free days of our daily summary for tech news.

Sun Basket Raising Money Amid Pressure on Meal Kit Startups

Since Blue Apron’s disappointing IPO last summer, meal kit delivery startups have been under pressure to sell or fold. But at least one smaller competitor, Sun Basket, is showing decent growth, according to credit card data. Now the firm is raising money—and offering big protections to investors to limit their risk.

Sun Basket, which sells meal kits with organic and sustainable ingredients, has authorized $51 million in Series D shares at a price equal to the previous fundraising round, according to a November filing. The company was previously valued at around $460 million, according to PitchBook. Whether the new round has closed couldn’t be learned, nor the identity of potential investors. If Sun Basket succeeds in raising the money at that valuation, it would suggest investors still have some faith in the sector.

No subscription? You're missing out.

Join the high-powered community of tech and business leaders who rely on The Information's original news and in-depth reporting.

In fact, another Blue Apron rival, HelloFresh, is also showing growth. HelloFresh, which sells meal kits in both Europe and the United States, saw its U.S. sales grow about 100% year-over-year in the fourth quarter, according to Second Measure. HelloFresh has also fared better than Blue Apron since going public last year on the Frankfurt Stock Exchange. It has traded slightly above its IPO price and has a market capitalization of 1.9 billion euros ($2.3 billion). HelloFresh has eaten into Blue Apron’s U.S. market share, but spent heavily on sales and marketing, and its long-term profitability is uncertain. An even smaller competitor, Gobble, raised a $15 million Series B round in October. Its sales are a fraction of Sun Basket’s, and growing more slowly.

Francine Hardaway commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
“The key will be differentiating your offering and owning your segment of the market.”