Starday Raises $11M, Launches Retailer Platform
AI-driven food company Starday Foods has raised a new tranche of funding to expand the distribution footprint of its four brands as it launches a “first-of-its-kind” retailer platform.
The $11 million Series A round was led by existing investors Slow Ventures and Equal Ventures (which led a previous $4 million round), bringing the food company’s total funding to $20 million. The new investment includes $8 million in equity and $3 million in a debt credit facility from Silicon Valley Bank.
“This infusion of capital marks the next phase of Starday’s growth in which we are accelerating the retail footprint for our brands, collaborating with retailers to build in the white space for consumers, and partnering with food companies to help them bring new products and brands to market,” said CEO and co-founder Chaz Flexman in a statement.
Starday Foods was founded using predictive modeling and a core proprietary artificial intelligence (AI) platform to find pent-up demand in packaged food. Since 2021, the company has launched 14 products across four brands – hazelnut cocoa spread Gooey, chickpea-based protein seasoning All Day, low-FODMAP seasoned rice blend Cozumi and allergen-free sweet potato crackers Habeya.
The new capital will go towards increasing Starday Foods’ retail footprint. Across all brands, the company sells products in Sprouts, Target, Whole Foods Market, Walmart and The Fresh Market. Most recently, Starday’s most recently launched brand, Habeya, went nationwide in Kroger, into Hannaford locations throughout New England and Erewhon in Southern California.
Along with expanding distribution of its branded products, Starday is leveraging its proprietary software to consult with retailers and other CPG businesses. The company’s proprietary data tools can help identify consumer buying behavior, track trends and provide useful information to retailers on price-pack architecture and assortment.
Starday intends to use some of its new capital to partner more directly with specific retailers. The company will be offering its “intelligence platform” to identify and launch products that will be sold exclusively for six to nine months before becoming available to other retailers.
Although it’s “too early to share” details about this evolving arm of the business, a Starday spokesperson said that the company is “collaborating with retail partners to develop and launch bespoke Starday-branded products.”
Just as Starday has done with its allergen-free Habeya crackers or its high-protein seasoning blend All-Day, the products will be “informed by whitespace on their retail partners’ shelves where they have a right to win and expand share of wallet” and “empowers retailers to stay ahead of trends, drive innovation and optimize the customer experience,” the company spokesperson said.
