Pod Foods Secures Funding for Grocery Supply Chain Innovation

Pod Foods Secures $13 Million to Expand Digital Wholesale Marketplace

Pod Foods is dedicated to ensuring grocery stores maintain well-stocked shelves with innovative food brands, responding to evolving consumer preferences. The company has recently announced $13 million in funding, comprised of a $10 million Series A round and a prior $3 million seed investment, to further develop its business-to-business digital wholesale marketplace.

Company Background and Initial Funding

The Austin-based company, founded by Larissa Russell and Fiona Lee, was initially profiled in 2019 after securing $3 million in funding. This initial round was spearheaded by Moment Ventures, with participation from M12. Pod Foods’ core technology delivers a data-driven solution for optimizing the retailer procurement process, connecting brands with a broader consumer base, particularly those from emerging companies.

Early Expansion and Mobile App Launch

Following the seed funding, Pod Foods initiated operations in Chicago, New York, and Los Angeles. To enhance inventory management efficiency, a mobile application was also launched, facilitating optimal product placement within retail locations.

Impact of the Pandemic

The onset of the global pandemic presented significant challenges to the grocery industry. Established brands often displaced emerging brands on store shelves in an effort to maintain essential supplies. Pod Foods strategically focused on increasing brand visibility for its partners during this period.

“This situation accelerated the need for the changes we were aiming to implement,” explained Russell to TechCrunch. “We utilized 2020 to address the challenges brought about by the pandemic and refine our business model.”

Series A Funding and Investor Participation

Both M12 and Moment Ventures participated in the Series A funding round, which was led by Industrious Ventures. This brings the company’s total funding to $16 million. Additional investors include Unshackled Ventures, Barrel Ventures, Relish Works, X Factor Ventures, XRC Labs, K2 Global, and Graphene Ventures.

Growth Trajectory and Expansion Plans

Russell stated that the recent investment aligns with Pod Foods’ current growth. The company currently operates in seven cities and plans to expand to ten, observing a 20% increase in repeat brand purchases compared to pre-pandemic levels.

Team Expansion and Technological Investment

The Series A funding has enabled Pod Foods to significantly expand its team, growing from 33 employees last December to 58. The company has appointed Timothy Wee, formerly of Google, Amazon, and Walmart, as its chief technology officer. Investments will also be directed towards data analysis to develop new services and products, according to Lee.

Adapting to Changing Consumer Demand

The demand for rapid delivery services has increased dramatically in the past two years. This has presented challenges for retailers in maintaining adequate stock levels. Since 2019, Pod Foods has experienced a tripling of both revenue and its customer base, assisting retailers in quickly adapting to shifting product sales trends.

“We’ve been forced to evolve,” Lee added. “Consumer preferences shifted during the pandemic, with increased demand for frozen foods and beverages. Our agility allowed us to quickly respond to these changes and ensure retailers’ shelves remained stocked with desired products.”

Pod Foods 2021 from Blank Space Studio on Vimeo.

Future Expansion Markets

Pod Foods’ future expansion plans include the Pacific Northwest, as well as increased presence around its existing New York and Chicago markets – the company’s largest – and in Florida.

Industry Perspective

Christian Gammill, a partner at Industrious Ventures, highlighted Pod Foods’ innovative approach, stating it “is the first to provide the necessary logistical infrastructure to fundamentally improve the grocery supply chain, creating a comprehensive system that benefits both retailers and brands.”

The company’s focus on digital solutions, data intelligence, and leveraging an upcoming market shift are key to its success. Gammill believes that if Pod Foods can effectively utilize data, it will deliver value to both customers and brands.

“Larissa and Fiona possess complementary skills and a strong vision,” Gammill concluded. “I observed limited attention in this specific area, but significant interest in other supply chains, which prompted our investment.”