San Diego-based Meallogix, an enterprise resource planning software company focused on the meal prep market, has closed $1.25 million for its oversubscribed seed round.
Launched in 2019, by Founder and CEO Ted Stearns. He founded the company to help small businesses eliminate the administrative tasks associated with running a meal prep company.
The company claims it has developed the most sophisticated technology in the meal prep sector. Its mission is to serve and improve the quality of life for Meal Preparation Operators (MPOs).
“There was no representation in the meal prep industry, no association, annual conventions, or online learning courses. So we created a company that would be the go-to-solution for experts and influencers,” said Stearns. “Our goal is to really set the gold standard for them and the greater industry.”
Meallogix works by providing a full suite of tools for meal prep companies and digitizes the day-to-day operations that go into prepping the kits. Its solution is fully integrated with restaurant-like ERP solutions, developed to increase business efficiency through robust management of MPO’s food supply chains.
In particular the software works to digitize a company’s supply chain, handles nutrition label creation, shopping list creation, recipe costing, delivery options, among other features.
In addition, its dashboard also gives meal prep companies analytics around financials and menu performance.
The Meallogix platform costs $149 a month. So far, more than 200 customers are paying for its solution, with an additional hundred on its waitlist, Stearns said. The company has also partnered with leading brands such as DoorDash, Sysco, Reinhart Foodservice, and AdvancePierre Foods, among others.
$11B Meal Prep Industry
Meal prep and meal kits have seen a bit of a resurgence during the pandemic. With restaurants shut down and more people eating at home, services that provide such pre-made meals help consumers break out of their eating habits and discover something new.
Prior to the coronavirus, there were roughly 50 million people participating in meal kit and meal prep subscriptions, said Stearns.
In 2016, the meal prep market was valued at $1.6 billion dollars and experienced a 300% surge to a $4.65 billion valuation in 2017. By 2022, it’s expected to more than double to $11.6 billion, according to Statista.
Stearns is the chief executive officer at Meallogix, he formerly launched three venture-backed startups including Assurance, a cloud-based sales and data platform (acquired in 2015), SimpleDisability and Benefyts.
Troy Underwood was recently joined as Meallogix’s chief technology officer. Underwood formerly founded companies including Transcend Technologies Group, FDI Computer Consulting, and benefitsCONNECT. FDI sold for $106 million after a merger deal with triVIN in 2007.
The company plans to use the new funds to build out its platform, additional staffers and expand its partnerships. Headquartered in Downtown San Diego, the startup employs 25.
“To raise seven figures during a seed round, have it be over-subscribed, and achieve that during a global pandemic is a testament to the exceptional product we offer and the team behind it,” said Stearns. n