UmamiCart Raises $6M to Deliver Asian Ingredients

The Challenge of Accessing Authentic Asian Ingredients

For many, the dinner table represents a gathering place centered around cherished foods. However, Andrea Xu, founder and CEO of Umamicart, initially faced difficulties in sourcing the ingredients necessary to recreate the dishes of her upbringing.

Xu’s parents, of Chinese descent, established a Chinese restaurant in Spain. She remembers that local grocery stores lacked the specific sauces, thinly sliced meats, and vegetables integral to Asian cooking. This challenge persisted even after she relocated to the U.S. for her studies, where she and her peers frequently discussed the limited selection available in the dedicated Asian food aisle.

Umamicart: Bridging the Gap in Asian Grocery Access

“Food serves as a powerful link to one’s cultural identity, yet obtaining these essential ingredients proved to be a significant obstacle,” Xu explained to TechCrunch. “Despite a population of 29 million Asian Americans in the U.S., access to authentic products remains a challenge.”

Recognizing the growing demand for convenient delivery services, Xu envisioned applying this model to Asian ingredients. In March, alongside Will Nichols, formerly of FJ Labs, she launched Umamicart, an online platform specializing in the delivery of both traditional and innovative Asian groceries.

Umamicart strives to be a comprehensive resource for home cooks. It offers not only essential pantry staples but also inspirational recipes and curated kits designed for specific cooking experiences, such as preparing roast duck for the holidays, enjoying a DIY sushi night, or creating hotpot and dumplings.

Delivery and Expansion

Customers can place orders through the company’s website – with a mobile app forthcoming – benefiting from same-day delivery in New York City. Next-day delivery extends to ZIP codes throughout greater New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Delaware, Virginia, Maryland, and Washington, D.C.

The company recently announced a $6 million seed funding round, co-led by M13 and FJ Labs, with additional investment from Picus Capital, Starting Line, Golden Ventures, First Minute Capital, and Goldhouse Ventures. This brings Umamicart’s total funding to $7 million, building upon an initial $1 million seed round.

Investor Confidence and Market Opportunity

Brent Murri, an investor at M13, was introduced to Xu through FJ Labs and highlighted Umamicart’s alignment with his firm’s investment focus on the digitization of the food industry. M13 has previously invested in companies like Thrive Market and Shef.

“The synergy between Andrea and Will as co-founders represents one of the most promising market fits I’ve observed this year,” Murri stated. “Andrea’s upbringing and established relationships with food distributors, combined with Will’s experience leading Instacart’s New York City operations, provide a unique advantage.”

Industry forecasts predict that half of the U.S. population will make at least one digital grocery purchase in the coming year. However, the digitization of grocery shopping isn’t uniform across all demographics, with the Asian market remaining largely reliant on traditional brick-and-mortar stores, creating an opportunity for Umamicart to deliver a curated selection with a superior customer experience.

Future Growth and Product Diversification

The newly acquired capital will facilitate the expansion of Umamicart’s delivery network, team growth, and the addition of new products and service areas to meet increasing customer demand. Xu aims to broaden the platform’s offerings to include a wider range of Southeast Asian cuisines and expand the available recipe library.

“We are also witnessing significant interest from individuals who, while not raised on Asian cuisine, have developed a fondness for it and enjoy cooking it,” she added.

The global food delivery market reached approximately $111 billion last year and is projected to reach $154 billion in 2023, according to ResearchAndMarkets.com. Interest in ethnic foods continues to rise, with U.S. retail sales of ethnic foods increasing from $11 billion in 2013 to $12.5 billion in 2018, and annual spending at Chinese restaurants in the U.S. exceeding $15 billion in 2020.

Impressive Growth and Customer Preferences

Since its launch in March, Umamicart has experienced a 313% increase in quarter-over-quarter web traffic, achieving a monthly growth rate of 20% to 30%. The platform now features a catalog of over 3,000 products.

Xu observed that during the pandemic, customers demonstrated a preference for fresh ingredients when preparing Asian dishes. When fresh options were unavailable, they sought alternatives. Furthermore, consumers are increasingly seeking higher-quality products beyond those typically found in standard “international” or “ethnic” aisles.

“We prioritize quality and vetting, ensuring that every product on Umamicart is a trusted staple or a promising new brand we’ve carefully selected,” she concluded.