- Founded: 2012
- Ceased Operations: 2023
What did Freshly do?
Freshly was a meal delivery service that offered pre-cooked, portioned, and ready-to-heat meals that were delivered to customers’ homes. Freshly meals were made with fresh, high-quality ingredients and were designed to be both healthy and convenient. Meals were delivered to customers in insulated boxes and could be heated and eaten in minutes. Freshly was one of the leading meal delivery services in the United States and was available in over 40 states.
Freshly raised a total of $107 million from these investors. Nestlé led Freshly’s $77 million Series C in June 2017, buying a 16 percent stake in the startup. In October 2020, Nestlé acquired Freshly for $950 million.
Who started Freshly?
Michael Wystrach (CEO & co-founder) and Carter Comstock (COO & co-founder)
Why did Freshly go out of business?
Freshly was not the only meal delivery service on the market, and it faced stiff competition from companies like HelloFresh, Blue Apron, and Purple Carrot. These companies offered similar services, but often at a lower price. Freshly was a high-cost business. It had to invest heavily in its infrastructure, including its kitchens, distribution centers, and marketing. These costs were difficult to recoup, especially as demand declined.
Freshly saw a surge in demand during the early days of the pandemic, as people were looking for convenient and healthy meal options. However, as the pandemic waned, customer demand declined. In 2022, Freshly reported a loss of $100 million. Freshly was unable to raise additional funding, and it was forced to close its doors.