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Food-Delivery Service Provider Munchery Abruptly Shutters After Raising Over $125M

Neon sign: Goodbye Money

Prepared meal delivery service provider Munchery has abruptly shut down, according to an email the company sent to customers today.

Founded nearly a decade ago, the company has raised $125.4 million from the likes of Menlo VenturesGreycroft, and Northgate Capital.

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In its missive, Munchery announced “with a heavy heart” that it was “closing its doors and ending operations effective immediately.” It added that any outstanding orders would be canceled and refunded. According to its website, Munchery operated in San Francisco, Los Angeles, Seattle, and New York.

Munchery provided no further details on why it was shutting down.

Here’s an excerpt of the email:

“Since 2010, we have been committed to bringing fresh, local, and delicious meals into your homes along with all our customers across the country, We’ve been delighted to work with world-renowned chefs, experiment with diverse and unique ingredients and recipes, and be a part of your holiday feasts and traditions. We have also enjoyed giving back to our community through meal donations, volunteer service, and so much more…We are so grateful to have had the opportunity to share our dream with you – it has been truly wonderful. Happy Eating!”

The news doesn’t come entirely as a surprise though. In January 2017, Munchery announced it was laying off 30 employees. It then underwent a controversial recapitalization two months later. Munchery’s 2015 $85 million Series C  valued the company at about $300 million, according to the Wall Street Journal.

Overall, the food-delivery delivery space has seen its share of struggles in recent years. In 2017, we covered how Maple, a New York-based prepared food delivery startup, had raised more than $25 million only to be acquired by UK-based food delivery company Deliveroo. That wasn’t as great as it sounded considering that with the acquisition, Maple announced it was ceasing operations in New York – the only market it was in.

Illustration: Li-Anne Dias

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