Little Spoon Inc., a direct baby food consumer company targeting millennial parents, raised $ 44 million in a venture capital financing round.
The so-called Series-B financing round estimates the company at roughly $ 200 million, people familiar with the matter said. Led by Valor Equity Partners.
Little Spoon delivers organic pastries, toddlers meals and vitamins to customers, bypassing grocery stores and other distribution points. Last year, Little Spoon launched Plaka, its meals for toddlers and older children. The company also provides a virtual community that provides carers with a platform to connect and interact.
“Packaged baby food has not evolved in line with the modern parent,” Chief Executive Ben Lewis said in an interview. “It was this apparent emptiness that we could not ignore,” he added. Lewis, who co-founded Little Spoon in 2017 with Lisa Barnett, Michelle Muller and Angela Vranich.
Little Spoon is one of several new baby food companies moving into the organic trend, aiming to attract the growing demographics of millennial parents. Recent reports of high levels of toxic metals in some major baby food brands have opened the door to new safety-focused competitors.
Little Spoon also points out that it is a mission-driven company. During the Covid-19 pandemic, she donated more than $ 100,000 of her products to food pantries and introduced a program to supply cost-effective products for first responders and anyone who experienced financial hardship associated with the pandemic, according to co-founders.
“Exactly it’s exactly the kind of company we want to invest in,” said Jon Shulkin, a board member and partner at Valor Equity Partners, who also invested in Little Spoon during his Serie A round of financing. a problem and they are doing a good job. ” He said he is optimistic about the company’s growth prospects because there are “always ways to scale” for baby and baby food manufacturers.
The Little Valley said it is growing rapidly, delivering seven million meals since the start of the pandemic out of 15 million delivered since the company was founded. Major baby food manufacturers have had to adapt while some parents make their own and others embrace the removal of the baby, in which babies are served real pieces of food rather than puree.
While overall food sales increased during the pandemic-related closures around the U.S., the baby food segment did not receive the same increase, according to market research firm IRI. Baby food sales fell in the spring of 2020, and although they have increased since then, growth has continued to lag behind the wider food segment.
—Annie Gasparro contributed to this article.
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