Kencko Closes $10 Million Round And Expands With Meal Offering

Plant-based nutrition platform kencko announced today the closing of a $10 million funding round that will help fuel the launch of a new line of hot meals. The round was led by existing investor Siddhi Capital with participation from new backers including Next View Ventures, Riverside Ventures, Silas Capital and Cheyenne Ventures, among others. This round brings the company’s total funding to over $13.5 million.

Founded in 2016, kencko’s mission is to make fruit and vegetable consumption convenient, accessible and sustainable for all Americans, according to co-founder and CEO Tomás Froes. The company debuted its flagship freeze-dried fruit and vegetable smoothie powders in 2019, before its recent expansion into a new “treat-moment” with its plant-based gumdrops last fall. Today’s announcement marks the direct-to-consumer brand’s next step in growing its portfolio, as it introduces hot bowls in six varieties including soups, risottos and curry dishes. According to its website, meal options will rotate, likely with limited edition combinations as is the case with its smoothie powders.

The new bowls contain the brand’s highest concentration of fruits and vegetables, at four of five recommended daily servings per meal, compared to its smoothies (2.5 servings) and gumdrops (one serving). The products are also positioned around convenience and can be prepared in under 10 minutes with the addition of hot water. Upon launching in February, the new line will be kencko’s most expensive item, priced at $6.90 per meal, compared to $2.49 for each smoothie powder pouch and $2.99 for gumdrops.

“We’re thrilled that our investment partners believe in our mission-driven business here at kencko,” said co-founder and CEO, Tomás Froes, in a press release. “With this new injection of capital, we’ll be able to continue to expand our product offering while helping more and more people to increase their daily fruit and vegetable intake.”

Siddhi Capital, the company’s lead investor, brings a range of experience from operations and co-packing management to growth strategies and material procurement. The growth equity firm’s portfolio consists of food and beverage brands including meal kit companies such as Sakara and Thistle and plant-based brands like No Evil Foods and Good Catch.

“kencko has always been laser focused on making it easier for people to get their recommended five daily servings of fruits and vegetables,” added Steven Finn from Siddhi Capital, in the release. “They’ve been executing at top speed, and we at Siddhi are excited to see their next innovations continue to advance their mission beyond their original line of smoothies!”

Sustainability is also at the core of kencko’s growth plans. Having already done so in its shipping, the certified B Corp is on track to achieve full carbon neutrality throughout its entire operations this year. The company also encourages consumers to make sustainable changes in their own lives, including a reusable bottle with smoothie orders and a dishwasher safe bowl with meal orders.

“kencko is growing at a rapid rate, working with Registered Dietitians, food scientists and Chefs to offer quick, convenient and delicious nutrition,” said Froes. “The brand also places a huge priority on sustainability, using compostable packaging, offsetting shipping emissions and helping members to avoid throwing away around 660 tons of fresh produce in 2021 alone.”

While shelf-stable freeze dried meals are a fairly unique concept in the DTC space, and save customers on the high shipping costs that come along with frozen or refrigerated meal delivery services, kencko does face competition on the shelf if it were to expand into conventional retail. Instant-cup style offerings are available everywhere from convenience to grocery with brands such as Wild Zora or Dr. McDougall’s also offering better-for-you, just-add-water meal options. However, kencko’s bowls are novel for their volume of fruit and vegetable ingredients and do not contain the artificial additives, refined sugars or high sodium concentrations found in many conventional instant meal products.