- SnackMagic, a build-your-own present field platform focusing largely on snacks, raised $15 million in Sequence A funding, led by Craft Ventures, the corporate stated in a press release.
- The funding will assist SnackMagic construct warehouse capability and logistics to permit it to supply extra merchandise. This 12 months it plans to maneuver past snacks into new product classes equivalent to meal kits, alcoholic drinks, dessert treats and non-edible items.
- SnackMagic, which formally launched final Might, has seen demand for its choices surge as home-bound customers look to snack extra and check out new issues. The upstart turned worthwhile in December.
SnackMagic was based by Stadium, a gaggle lunch supply service in New York Metropolis fashionable amongst companies together with Google and Main League Baseball earlier than the coronavirus halted workplace work. As soon as the pandemic shut down town and folks began working from residence, Stadium, which was rising double digits month over month, noticed income fall “off a steep cliff,” stated Shaunak Amin, founder and CEO of SnackMagic.
With a platform already in place, Amin stated the corporate shortly pivoted to help the exploding work-from-home pattern and supply companies a technique to nonetheless be capable of present rewards to staff who have been now not within the workplace.
On the identical time, as supermarkets targeted early through the pandemic on growing security measures for workers and conserving cabinets stocked with fashionable gadgets, retailers had much less time and shelf area to commit to newer merchandise. This left smaller upstarts struggling to get their choices in the marketplace. E-commerce, nonetheless, supplies a neater means for early-stage startups to shortly achieve traction with an viewers, whatever the atmosphere. With customers snacking extra and spending extra time procuring on-line, each developments have gained momentum throughout COVID-19, websites like SnackMagic are within the candy spot of at the moment’s shopper developments.
In lower than a 12 months after it launched, SnackMagic’s technique has prompted traders to take discover. Craft Ventures is not any stranger to know-how, having invested in Airbnb, Fb, Tesla and Twitter. SnackMagic, which turned worthwhile in December, is posting annual gross sales of $20 million when December’s income is stretched out over a whole 12 months. SnackMagic carries greater than 800 SKUs from about 300 manufacturers, and ships greater than 50,000 bins a month.
“I do not suppose anyone firm has really actually cornered this market. And with the innovation that is taking place on this area, with so many new manufacturers launching, so many various food regimen developments, I feel it is a large market that is evolving very, in a short time,” Amin instructed Meals Dive final summer time. “We might wish to personal the area and be the Amazon for snacks and drinks.”
Snacking has grown in recognition through the pandemic with 88% of adults saying they’re snacking extra or the identical than they have been earlier than the outbreak, based on a examine from Mondelez Worldwide. On the identical time, 70% of millennials and 67% of these working from residence desire snacking over meals.
Whereas SnackMagic, as its title implies, now focuses on meals and beverage snacks, the plan to broaden into product classes like alcoholic drinks, dessert treats and non-edible items like swag and present baskets, will give customers extra causes to come back to the positioning and assist the upstart manufacturers it carries entice extra consideration. A consumer may purchase a meal package or an energy reishi and inexperienced tea adaptogen mix powder for themselves and alcohol or a present basket for a pal.
The problem for SnackMagic will probably be to maintain its web site as a house for younger upstart manufacturers, sprinkled maybe with a smattering of things from large CPGs like sparkling water Topo Chico from Coca-Cola or Tate’s Bake Store from Mondelez, which have been offered there up to now. In any other case it finds itself in much more direct competitors with the Amazons and Walmarts of the world.
SnackMagic additionally presents customers a kind of treasure hunt-type of environment the place what’s offered is often up to date. The variability and fixed likelihood to experiment may show particularly engaging to consumers who wish to strive new flavors, manufacturers or latch onto new or present developments.