Investors dish out $21m to Vancouver meal-kit service Fresh Prep

B.C. company will expand into Alberta later this month

Vancouver-based Fresh Prep is expanding its meal-kit delivery services beyond B.C. and into Alberta following a $21-million raise | Photo: submitted

Fresh Prep Foods Inc. has had a busy summer cooking up investor interest.

The Vancouver-based meal-kit delivery service revealed Thursday the close of a $21-million Series B funding round as it prepares to expand into Alberta later this month.

The company, known for kits that minimize packaging waste, plans to also offer services in other parts of Canada sometime in the future.

While the pandemic has rattled much of the economy, companies offering meal delivery services have been among the benefactors of foodies skipping indoor dining in favour of eating at home.

Fresh Prep’s revenue has grown 540% over the past three years and co-CEO Becky Bauer told BIV back in January her company was making 10,000 deliveries each week across the province.

“We've been lucky enough that the spike that we had at … the start of COVID, where [people] were turning to grocery meal-kit delivery services, we've actually maintained a lot of that growth,” she said.

“Our team has done an amazing job of being able to handle that growth despite having to work with all of those COVID restrictions. We’re really proud.”

The delivery service previously raised $7 million as part of a Series A funding round back in 2020 as well as $3.3 million in 2018.

Co-founder Dhruv Sood said following the first raise the investment dollars would be going towards expanding outside Metro Vancouver, with Alberta potentially being the first target.

That journey over the Rockies will now begin later this month.

The funding round was led by Vancouver-based Yellow Point Equity Partners, with support from Renewal Funds.

torton@biv.com

@reporton