Fresh Prep, the Vancouver-based e-commerce meal kit delivery service, completed their first round of financing since inception. Fresh Prep raised a total of $3.3 million through a mix of equity and debt financing led by First West Capital and private investors.
Bootstrapping their way since 2015 to becoming a leader in the Vancouver meal-kit market, this is the first time Fresh Prep is receiving any external financing. Co-founders Becky Brauer, Dhruv Sood, and Husein Rahemtulla have grown the company from three full-time employees and 100 customers in the first year to a team of over 150 staff and 20,000 customers, in three years, across Lower Mainland and in Victoria, BC.
“Fresh Prep is a prime example of a thriving, innovative Canadian technology company, and First West Capital is thrilled to be providing junior capital to fuel its growth,” says Ryan Lang, Managing Director at First West Capital. “Out of the box thinking has allowed Fresh Prep to emerge as a leader in the meal kit industry, and we’re proud to be partners in its continued success.”
This round of funding will fuel market expansion, R&D, product upgrades, and improvements to the facility and office space for the growing Fresh Prep team. Another area of focus will be talent acquisition, including the development team. Fresh Prep’s custom platform is an in-house built technology designed to allow management of all subscriptions which facilitate the logistics heavy fulfillment of orders, assembly and customer relations. Additional developers will allow improvements to both the product and online experience. “Growing responsibly has always been our priority. Our stable, recurring revenue model with a sharp focus on our customers and our product has led to sustainable, profitable growth, and has made debt financing the clear choice,” says Fresh Prep Co-Founder, Dhruv Sood.
When Fresh Prep launched their retail location in 2015, operations were housed inside a cozy 760 square foot storefront. Quickly outgrowing that location, and the one after, Fresh Prep moved into a new facility in East Vancouver— a spacious 35,000 square foot warehouse which will be the new headquarters for both kit production and office space. Fresh Prep has already delivered well above 1 million meals, and is moving forward full steam ahead to conquer the next milestone of delivering their 10 millionth meal.
About Fresh Prep
Fresh Prep is a meal kit delivery service based in Vancouver. Founded in 2015 by Becky Brauer, Dhruv Sood and Husein Rahemtulla, Fresh Prep delivers everything needed to make meals at home using fresh ingredients in 30 minutes. With a focus on sustainability, pre-chopped ingredients are delivered in reusable cooler bags with fresh, locally sourced ingredients whenever possible. Meals are affordable, diverse, take less than 30 minutes to make and fit the needs of individuals, couples or families. This service is currently offered through 17 municipalities throughout Lower Mainland, BC as well as in Victoria, BC.