After a not-so-successful Initial Public Offering, things are not looking good for Blue Apron as its immediate rival Chef’d has undergone a fund-raising round. According to a recent update from SEC filing, California-based Chef’d has raised $35.2 million to undergo a transformation from being a legacy food company to a more modern company that will adapt to the digital age.
The funding round was split into various components, which included a previously announced $10 million from Campbell Soup Co. and another $200,000 by online grocery provider Fresh Direct.
Fresh Direct had invested in Chef’d in a Series A funding. This was further supported by an additional infusion of $25 million by Smithfield Foods, a meat processing company.
Chef’d was started in 2015 with the sole purpose of providing meals from a variety of choices without any membership fees or subscriptions. The company has collaborated with chefs and other professionals in the industry, providing more than 1,000 breakfast, lunch, and dinner meals from more than 125 brands.
CEO Kylie Ransford said the industry that involves direct-to-customer service has the potential to innovate and evolve. Companies like Chef’d have designed their strategies to keep in mind what the market demands.
Unlike Chef’d, Blue Apron had reported a loss of $31.6 million since its public offering in June, and in the second quarter there was a further loss beyond the prediction of Wall Street (around $30 million) to 30 cents a share. Meanwhile, the company’s revenue $238.1 million gave positive vibes to the market.