Both investors have already dipped a toe into the food-on-demand space: Craft has backed the likes of Cloud Kitchen (which reinvents smart kitchens for delivery-only restaurants) and Postmates (an on-demand delivery from any type of merchant), while Luxor co-led a $528m round in Glovo, one of the world’s leading multi-category delivery players based in Spain.
SnackMagic plans to use the proceeds to increase warehouse capacity and logistic support to cope with the unprecedented demand for its goods. Founder and CEO Shaunak Amin said it will also be used to extend the service into other gifting categories, including meal kits, alcohol, desserts and non-edible gifts.
SnackMagic was founded to counteract the nosediving sales of Amin’s previous enterprise Stadium, a lunch delivery service catering to corporate clients in New York City, thanks to the pandemic. As bricks-and-mortar offices closed down around him, he noticed an uptick in online orders of snacks as consumers came to grips with staying at home.
In the eight months since its launch, the company achieved profitability with a $20m revenue run rate.
Pick and mix
The online gifting site enables recipients to customise the contents of their gift snack box from a selection of more than 700 curated items.
Recipients are gifted an amount they can spend, and they choose what they want from SnackMagic’s menu. The customisable boxes are currently only available in North America, in areas serviced by SnackMagic’s primary warehouse, but Amin plans to extend the startup’s pick-and-mix model to more geographies, starting with the UK.
Currently, pre-packed snack boxes can be shipped anywhere in the world.
SnackMagic can accommodate bulk orders for corporate clients, along with promotional items or branded boxes. Microsoft, Amazon, Google and Spotify are among its customers.
Company culture builder
“Our unique approach to gifting adds a delightful layer of fun as consumers curate their own dream box,” said Amin.
“Our customer response over the last year has been incredible.
“Having the financial support of Craft Ventures will help us execute our vision more quickly and broadly, with the experience of seasoned founders and operators behind us.”
Bryan Rosenblatt, principal investor at Craft Ventures, added, “SnackMagic’s immediate success was due to an excellent combination of timing, innovative thinking and world-class execution.
“As companies embrace the future of a flexible workplace, SnackMagic is not just a snack box delivery platform but a company culture builder.”