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Starting e-commerce companies built around food continue to collect funding as investors are looking for sticky consumer concepts that can be scaled without the bank’s break. Wednesday, Germany’s Lanch – which attempts to develop social media and influence to develop popular food brands along with retail networks to distribute them – EUR 26 million ($ 27 million) is closed to expand their business.
The round of the series is led by Felix and HV Capital. Lanch does not discover its evaluation, but we understand that this is definitely upward. The start -up company has raised about $ 34 million so far (including this seed in 2023) – a normal multiple of the series, probably between $ 100 and $ 150 million.
In an interview, Nono Konopka-a CEO who co-ordinated the company with Dominic Kluge, Jonas Meyner and Kevin Kocs said that the plan was to use funding using funding in Germany before moving to several markets.
So far, Lanch has developed three brands: Loco Chicken and Happy Slice Pizza, as well as his first packed food, happy chips (potato chips).
Lanch will use the game plan it develops-mixing data from social media and other online activities to invent the deficiencies of the market; Plus, touching creators/influencers to start and approve food products – to this list.
So far – and aside the fact that this is not particularly healthy – that the formula has served well. He claimed that since he started commercially a year and a half ago, he has expanded to 350 ghost kitchens to prepare hot meals -Loco Chicken is particularly popular -which, in turn, are sold in increasing number of franchise stores, but primarily through food transport. Platforms like Lieferando and Walt.
In the German social media landscape, Lanch also had some viral victories to increase his profile. He sold about 30,000 pizza on a weekend when he launched a pair of online comics, the KNOSSI and Trymacs comics. When he launched the first physical Loco Chicken Shop – of course, the insertion of the Tikts and other platforms – closed the area with masses and had to call the cops, Knopka said.
“Half of the German population knows our brands,” Konopka said. “We are very focused on building the next structure of Cane or Chick-File.”
He also said that potato chips are now sold in 10,000+ supermarkets, adding that he would soon announce another snack.
Lanch’s rise underlines the appearance of a new class of start -up (and technology company), which relies on all the penetrating presence of social media and the data it brings with itself to build new types of products.
Konopka said he considered Lanchot a technology company because of the use of data.
“It is incredibly difficult to figure out where to open a restaurant, but we have 350 shipping places (ghost kitchens) and give us a thoughtful amount of data,” he said. “The data that really tell us where it makes sense to open a physical restaurant. This is a huge advantage. ”
These data help identify what people like to eat, to figure out what food products work in the next development. In addition Running experiments or large marketing campaigns.
Nevertheless, food-based tech startups have given industry and investors a lot of indigestion over the years.
Fast shipping start -ups and online grocery stores have fluctuated and collapsed, breaking hundreds of millions of dollars. D2C food start-ups also came and disappeared: they have raised hundreds of millions over the years just to find a question with the supply chains and find the product market fit (or just do not work as they said)
One of the reasons is that many D2C food start -ups never work, and Felix Frederic Court believes that they are leaning on costly marketing practices for profitable unity economics. Lanch’s more efficient cost base was definitely part of investors’ attractiveness, he said.
