Sources told TechCrunch that San Francisco-based Munchery is targeting $20 million for its new funding round. The startup, which offers customers prepared gourmet meals, was founded by Tri Tran and Conrad Chu in 2010 to give busy professionals convenient but healthy meal choices unlike the greasy or run-of-the-mill fare offered in fast food, the report said.
The latest round will add to the company's seed round which raised $700,000 and its Series A which secured $4 million. Munchery's backers include Sherpa Ventures, Menlo Ventures, Anthos Capital and e.ventures. Matt Mullenweg, Randi Zuckerberg and Eric Ries are also investors in the food startup, the report said.
Munchery's meal selections feature current diet and nutrition trends, offering categories like "dairy-free," "vegan," and "low carb," among others. Customers simply choose the food they want done, when they want it delivered, give their delivery and payment information and the company takes care of the rest. It makes meals from scratch and delivers it in the same day to those living in the San Francisco Bay area, the report said.
Aside from giving fresh food, Munchery also operates a buy-one give-one system where it gives another meal to the needy for each meal customers order. The startup also utilizes packaging that's friendly to the environment and engages the services of professional local chefs to prepare the meals. The expense that comes with this kind of detailed attention is sure to be hefty, which in part, most likely explains the reason why it needs to raise more funds after its Series A round, the report said.
It's not also surprising that the company is scouting around for more funds since it redesigned its web-based menus in October and rebuilt its mobile apps. It also rolled out wine, beer and cider ordering and got three-star chef Bridget Batson on board, the report said.
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