Renewal4 Leads Series A in Fresh Prep
Fresh Prep raises $7M CAD to tackle meal kit plastic packaging problem
Investment in meal kit company to go zero waste as reliance on home-cooked meals grows, yet sustainability challenges persist
Vancouver, BC — Meal kit delivery service, Fresh Prep, completes their Series A round of financing of $7 million CAD.
The round was led by Renewal Funds, a sustainability-focused venture capital firm in Vancouver, B.C., along with additional funds from strategic and existing investors. Funds raised for the five-year-old company totals over $10 million CAD to date.
“The new round will go towards service enhancements and the rollout of Fresh Prep’s 100% reusable meal kit, which will curb the usage of single-use plastics in Fresh Prep meal kits,” says Dhruv Sood, Co-CEO and Co-Founder of Fresh Prep.
Fresh Prep will be the only meal kit provider to offer such a product on a large scale in Canada. This will be a significant step towards Fresh Prep’s goal of becoming a completely zero waste business by 2025.
“Renewal Funds’ mission is to support companies that reduce our collective environmental footprint on the planet,” says Genevieve Pinto, Partner at Renewal Funds and incoming Fresh Prep board member. “Fresh Prep’s ambitious mission of being the most sustainable meal kit in the industry makes them an ideal partner for us.”
Renewal Funds invests in early growth stage environmental technology and sustainable consumer products companies. “We have known the Fresh Prep team for several years and have been impressed with their ability to scale quickly and maintain their commitment to high quality, delicious meals and minimizing waste,” added Jerrod Shin, Associate at Renewal Funds.
While the use of meal kit services has grown during the COVID-19 pandemic, so does the amount of waste produced by companies that deliver meal kits in heavily-insulated cardboard boxes with dozens of single-use plastics and delivered by third-party couriers. Even with the company’s rapid growth since launching in 2015, Fresh Prep’s business model has always focused on minimizing food waste and packaging waste through innovative delivery and food preparation formats.
“We pride ourselves on being a fully vertically-integrated food company that is strongly enabled by technology and innovation in logistics,” says Becky Brauer, Co-CEO and Co-Founder of Fresh Prep. “We manage our own drivers for deliveries, which gives us access to real-time tracking and the added benefit of assisting with recycling and reusing our various packaging.”
Already the most sustainable meal kit in Canada, Fresh Prep delivers meal kits in reusable cooler bags and recycles single-use plastic provided in kits. Through its recycling program, Fresh Prep diverted over 100,000kg of single-use plastic from landfills in 2019. Additionally, Fresh Prep only uses Ocean Wise recommended seafood, which helps ensure the health of oceans for generations to come.
About Fresh Prep
Fresh Prep is a meal kit delivery service based in Vancouver, BC. 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, and fit the needs of individuals, couples or families. This service is currently offered in over 20 municipalities throughout the Lower Mainland, the Okanagan, and on Vancouver Island. Fresh Prep is a Certified B Corporation®, dedicated to doing business in the most responsible way, balancing purpose and profit.
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For more information, please visit: freshprep.ca
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About Renewal Funds
Renewal Funds is a mission venture capital firm investing in early growth stage companies in Canada and the United States, focusing on environmental technology and sustainable consumer products.. For more information, please visit www.renewalfunds.com.