Ellen DeGeneres, Portia de Rossi & Stars Invest in Shelf Engine

Shelf Engine Secures Funding Extension with Celebrity Backing

Shelf Engine, dedicated to minimizing food waste within grocery retail, has successfully obtained a $2 million extension to its previously announced $41 million Series B funding round from March.

Notable new investors include Ellen DeGeneres, Portia de Rossi, Shaun White, and Shawn Mendes. This strategic investment, alongside PLUS Capital, elevates the Seattle-based company’s total funding to $60 million since its founding in 2016. A prior $12 million Series A round was completed in 2020.

Advanced Technology for Waste Reduction

Shelf Engine’s core technology centers around grocery order automation. Utilizing sophisticated statistical modeling and artificial intelligence, the system accurately forecasts food order volumes. This enables retailers to potentially decrease food waste by up to 32%, simultaneously boosting both gross margins and sales – often exceeding 50%.

According to Stefan Kalb, co-founder and CEO of Shelf Engine, the company has already facilitated the diversion of 1 million pounds of food from landfills. This information was shared with TechCrunch.

Growth and Leadership Expansion

“The past year has seen remarkable expansion, driven largely by our partnerships with major retailers such as Target and Kroger,” Kalb stated. “Furthermore, we’ve recently appointed a president, Kane McCord, within the last six weeks, strengthening our leadership team.”

Over the last year, Shelf Engine experienced over 540% revenue growth. Concurrently, the company’s workforce expanded from 23 to 200 employees, with plans to more than double that number in the coming 12 months.

Funding Allocation and Future Plans

The newly acquired funding will be strategically allocated to support scaling operations with existing clients. It will also accelerate investment in research and development, specifically focusing on enhancing the AI systems and automation capabilities.

Amanda Groves, a partner at PLUS Capital, explained that her firm collaborates with approximately 65 individuals prominent in film, television, sports, and culture, including the four new investors in Shelf Engine.

Many of her clients are actively seeking investment opportunities or are willing to contribute through direct involvement. PLUS Capital identifies suitable ventures and invests alongside them.

Sustainability as a Core Investment Focus

Shelf Engine aligns with PLUS Capital’s investment priorities, particularly in the area of sustainability. The firm actively seeks opportunities across diverse sectors, including food, energy, apparel, packaging, and recycling. The company’s technology-driven approach to sustainability resonated with all investors, as did its ability to scale within grocery stores without altering consumer habits.

“The immediate impact of Shelf Engine – a 10% reduction in spoilage upon installation – was a key factor in exciting our clients,” Groves added.

Leveraging Celebrity Influence

Joe Montana was an early celebrity investor in Shelf Engine. Kalb emphasized that partnering with celebrities amplifies the company’s mission to eliminate food waste and address the climate crisis, raising broader awareness.

“While B2B software may not be inherently glamorous, climate change is a pressing issue that many celebrities are passionate about,” he explained. “Shawn Mendes’ extensive social media reach – over 60 million followers – provides a powerful platform to highlight this issue. His investment can inspire his followers to advocate for change within grocery stores.” This represents a strategic shift from a purely B2B approach to fostering a community-driven movement.

Addressing a Global Problem

Shelf Engine is not the sole entity addressing the issue of food waste, a global problem estimated to cost $1.3 trillion annually. Companies like Apeel, OLIO, Imperfect Foods, Mori, and Phood Solutions are also actively working to improve the food supply chain and have secured venture funding to support their missions.

Expansion and Future Development

Currently operating in over 3,000 stores nationwide across grocery, food service, and convenience sectors – a significant increase from 18 months ago – Shelf Engine is now focused on expanding into new categories and managing a wider range of projects.

Kalb indicated a particular interest in expanding the company’s capabilities within complex categories like meat, seafood, and deli, which often involve customized orders. “We are approaching a point where we can effectively manage more aspects of the store, particularly in these specialized areas,” he concluded.