The world’s biggest food and beverage company- Nestle’ USA has recently announced its latest acquisition of healthy meal start-up company, freshly. The deal was worth USD 1.5 billion which were bifurcated as USD 950 million and an additional amount of USD 550 million on potential future profitability.
The healthy meal company- Freshly is based out of New York City and is a success in itself. The brand offers fresh and healthy meals as the name suggests, delivers the food at your door-step which can then be prepared by simply microwaving it for a few minutes. What most people do is, buy food for a week in bulk and keep eating healthy and delicious food, every day of the week with minimum effort of just microwaving the food.
What if someone was working from 9 am to 6 pm and does not have time to cook healthy meals and alternates the effort by buying out minute-made noodles or ordering junk food online, Freshly fulfils this need of the human body to eat healthy and fresh. Get healthy food delivered at your door-step, once every week and enjoy eating the best of foods without worrying to take out time and put in the effort to cook.
Hoping that you understood the context of what Freshly offers, let us discuss some entrepreneurial numbers. Nestle’ mentioned in a statement that Freshly ships more than 1 million meal packages per week across 48-50 different states and forecasts this year’s sales to cross USD 500 million.
In a funding round, Freshly raised total funds worth USD 110 million from some of the big investors such as Insight Venture Partners, Highland Capital Partners and Nestle’ USA. This raise from the funding round led to Series C round back in 2017.
Well, the pandemic has brought its pros and cons, everyone these days likes to chill at home, have a perfect dinner and create a perfect setting. No one prefers to go out and eat because of the risk involved. Nestle’ predicted this situation a while back and decided to take over the likes of healthy and fresh food delivery market, acquired Freshly.
As stated by Nestle’ USA CEO, Steve Presley- Freshly is a fast-growing food-technology start-up that is innovative with its business model. Nestle’ USA acquiring Freshly will fill in the gap for the food and beverage company and help them to capitalise on the new realities of the United States food market post-COVID-19. The more the company understands this, the more likely it is to win in the future and mark its place for success.