The build-your-own snack box service SnackMagic raised $15 million in a Series A funding round led by Craft Ventures, while Luxor Capital participated. The new funding will be used to continue growing SnackMagic’s existing business and extend into other gifting verticals.
In 2020, the company had a $20 million revenue run rate in eight months, after being closed at the beginning of the COVID-19 pandemic. SnackMagic turned profitable in December 2020.
The snacks marketplace offers buying snacks as gifts and shipping them all over the world, as well as making customizable snack boxes, but only in North America. Recipients of the gifts get the amount they can spend and pick the snacks themselves.
The plan for the company is to expand its pick-and-mix model to more geographies, starting with the U.K. Another plan vertical is to expand the offer on the marketplace, with items like alcohol, meal kits, and non-food items, as well as add areas like corporate gifting, marketing, and consumer services, as well as analytics coming out of its sales.
There are between 700 and 800 items to choose from on the marketplace. Brands offering their products on SnackMagic have access to a dashboard where they monitor what’s selling, how much stock is left of their own items, and much more other data.
SnackMagic started out as a food delivery service, which offered to order food from different restaurants in a single order, having large groups of people wanting to order food together in mind. During six years, the company grew and started to take off, when COVID-19 hit.
“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,” said Bryan Rosenblatt, principal investor at Craft Ventures.