woodspoon Raises $14M to Support Home Chefs

WoodSpoon Secures $14 Million in Series A Funding for Expansion

WoodSpoon, a home-cooked food delivery service, is poised for growth following a successful $14 million Series A funding round.

Investment Details

Restaurant Brands International spearheaded the investment, alongside World Trade Ventures and a collective of private investors, notably including Victor Lazarte.

Company Origins and Growth

Founded in 2019 by Oren Saar and Merav Kalish Rozengarten, WoodSpoon originated from a desire to recreate the flavors of their homeland while living in New York.

The founders connected with local home chefs, establishing a platform for them to share their culinary traditions and passion.

Currently, WoodSpoon serves over 16,000 active customers across Manhattan, Brooklyn, and Queens. The company is experiencing a remarkable 50% month-over-month growth rate.

Customers can conveniently order a diverse range of cuisines through the WoodSpoon website or mobile application, with options for both on-demand and scheduled delivery.

Notably, 35% of WoodSpoon’s customer base returns for a fourth order within just 17 days of their initial purchase, as stated by Saar to TechCrunch.

Funding Utilization and Future Plans

This new funding brings WoodSpoon’s total raised capital to $16 million, building upon a previous $2 million raise in late 2020.

The Series A funding will be strategically allocated to accelerate growth through investments in research and development (R&D) and marketing initiatives.

Furthermore, the company intends to double its team size to facilitate expansion into new markets across the United States within the next 12 months.

Supporting Home Chefs

WoodSpoon not only provides customers with culturally rich food options but also creates income opportunities for its network of home chefs.

This network comprises approximately 150 active professional chefs, immigrants, and passionate cooks who prepare dishes for the platform at least three times a month.

WoodSpoon maintains quality control through thorough chef interviews, kitchen inspections, and comprehensive training programs.

“Maintaining a personal connection with both our customers and home chefs is paramount as we scale,” Saar emphasized. “We view each chef as family and are dedicated to supporting their brand building while ensuring consistently high-quality food.”

Technology and Team Expansion

With a current team of 30 employees, WoodSpoon plans to recruit additional engineers to further develop its technological infrastructure.

A new product launch is scheduled for the end of August, and a significant overhaul of the WoodSpoon app is planned to enhance its user interface and overall experience.

The Series A funding will also enable WoodSpoon to onboard the numerous home chefs currently on its waiting list.

Market Outlook

The global online food delivery services market is projected to reach $126.91 billion in 2021 and surge to $192.16 billion by 2025, according to research from Research and Markets.

Restaurant Brands International’s Perspective

Chris Brigleb, head of corporate development at Restaurant Brands International, highlighted the importance of technology for his company.

They actively sought investment opportunities beyond the traditional quick-service restaurant sector.

Brigleb discovered WoodSpoon four months ago and was increasingly impressed with the company’s approach, even encouraging Saar to expedite growth and fundraising efforts.

He believes WoodSpoon offers a comprehensive solution, combining a positive user experience with a user-friendly marketplace and robust support for chefs, including packaging and logistics.

“The delivery aspect was a key differentiator for us,” Brigleb stated. “WoodSpoon alleviates the logistical challenges of delivery for home chefs, allowing them to concentrate on their culinary expertise.”