Peatos Closes Funding Round To Pursue 2023 Profitability Goal

Snack maker PeaTos announced it has secured new funding as it seeks to hit profitability in 2023. This was the third round of its Series A, dubbed A3, and was led by POST Holdings, Inc. as well as other “high profile private investors,” according to Nick Desai, CEO of PeaTos’ parent company, Snack it Forward. The amount raised was undisclosed.

While the company had announced a $12.5 million Series B round last February, Desai claims that was actually a Series A2. That capital infusion came less than six months after the company announced it had raised $7 million in the inaugural round of its Series A financing.

Following last week’s announcement, Desai said PeaTos has raised approximately $20 million to-date and although Post has offered significant financial support, the company does not have “a specific agenda” in terms of its long term relationship with the food conglomerate.

“They are a deep-pocketed CPG company that has been really supportive of what we’re trying to achieve as a brand and our mission, but I wouldn’t say that there’s something specific that we’re looking for from them,” he said.

Desai said he has had conversations with Post about operating synergies, but the two sides have not yet agreed on a plan for execution or integration.

The brand currently produces plant-based extruded snack products made from a blend of pulse flours such as peas, lentils and faba beans. The products come in both rings and curls formats and are available in both single-serve and multi-serve packs in four flavors: Pizza, Onion, Fiery and No Cheese.

Alongside the new capital, PeaTos also announced its move into select Walmart stores nationwide. Additionally, the brand launched at over 2,000 CVS Health and HEB Texas stores earlier this year and is also available at select retail locations including Target, Sprouts, Kroger and Sam’s Club.

The distribution gains come after a packaging update for PeaTos which was unveiled at Expo West. At the time, Desai said the new look was aimed at catering to younger consumers with its brighter colors and reflecting a “unique fun and flavor first” profile. This week, the brand doubled down on engaging younger audiences and announced a new licensing agreement with Paramount, which will see the Teenage Mutant Ninja Turtles featured on PeaTos packaging for a limited time as well as on in-store displays.

As PeaTos looks to profitability next year, Desai said, it will also launch a new snack product in line with its current offerings.