Good Eggs Secures $50M for California Expansion
Business Model Evolution Poises Company for Growth in $1 Trillion Grocery Industry.
Good Eggs, the online market that delivers absurdly fresh groceries, today announces $50 million in new funding led by Benchmark, with additional participation from existing investors Index Ventures, Obvious Ventures, S2G Ventures, DNS Capital, Uprising and Collaborative Fund. Bill Gurley, Benchmark general partner, will join Good Eggs’ board of directors.
Index Insight: Good Eggs’ latest funding round shows how a strong mission and great execution can turn a company around.
In California’s metro markets alone, the online grocery market is estimated to be a $7B+ market opportunity. Good Eggs will use the funds to quadruple their capacity in the Bay Area and expand their delivery geography. In 2019, they plan to launch operations in Southern California. The combined expansion will result in the creation of 1000+ good jobs.
“Our team was deeply impressed by the operational discipline that Bentley and the team at Good Eggs have implemented to transform this business,” said Bill Gurley, general partner at Benchmark. “We made a study of what Good Eggs has achieved and believe the business is very well positioned to capture and scale the growing market of people who are passionate about the quality and provenance of the food they consume. It’s a massive opportunity."
Over the past two years, Good Eggs has transformed from a specialty food delivery company to a primary grocer and food solutions provider. The grocery industry is striving to catch up to how people live and has spurred a “grocery war” amongst online and brick and mortar grocery, and meal kit companies. While many food solutions are now available to consumers -- meal kits, grocery delivery, etc. -- Good Eggs is the only company to not only provide its customers with all of these solutions but to deliver absurdly fresh products to consumers often within 48 hours of being harvested. Currently, 70% of their offerings are locally sourced.
“We’ve dramatically transformed our business over the past two years. It began by recognizing we are a food company powered by technology and continued with a laser focus on our business fundamentals,” said Bentley Hall, Good Eggs CEO. “What hasn’t changed is our commitment to delivering absurdly fresh, high-quality products to our customers and making it effortless to eat well at home.”
This commitment is why the company had strong support from existing investors who continue to back Good Eggs through its next chapter.
"When we first invested in Good Eggs, we bought into their compelling vision of bringing absurdly fresh farmers market produce to your home. Since then, the company has learned to tackle its challenges head-on, and developed into a thriving and sustainable business with an incredibly loyal base of customers and suppliers. Today, it's announcing a big milestone and welcoming an important investor. We couldn't be more proud of Bentley and his team for their success and dedication to the company's mission," said longtime investor and board member Danny Rimer, general partner at Index Ventures.
"Good Eggs' purpose drives its profits, and as the business grows the more they're able to fuel that purpose,” said Vishal Vasishth, co-founder and managing partner of Obvious Ventures who invested in Good Eggs in 2016. “Good Eggs today reminds us of revered brands like Patagonia in their early days: innovative product, 100% supply chain transparency, and extraordinary company culture. This is a special company - a beloved brand - and we are humbled to be along for the journey."
About Good Eggs
Good Eggs is a pioneering online grocer and meal kit delivery service with a mission to reinvent your food system, for good. The Bay-Area based company is the only service that combines absurdly fresh local produce, meal kits for every occasion, grocery staples, and wine, beer, and spirits to wash it down. With same-day delivery across the Bay Area, Good Eggs is the simplest way to feed your family well all week long.
Over the past two years, Good Eggs has added over 1,000 items across categories to its marketplace and expanded its delivery footprint throughout SF, East Bay, Marin, and the South Bay and Peninsula. As the company has grown, they remain steadfast in their mission. Over 70% of Good Eggs’ assortment is local, and every item carried must meet a strict list of sourcing standards. In addition to good food, the company provides good jobs. Every operations team member receives benefits, carries equity, and is paid 20 to 50% above industry average.
Good Eggs is privately owned. Investors include Benchmark, Index Ventures, Obvious Ventures, S2G Ventures and others. The company was awarded Best Grocery Delivery by San Francisco Magazine in 2017. For more information about Good Eggs visit https://www.about.goodeggs.com
Published — May 15, 2018