萝莉视频

, a startup that connects independent chefs to corporations that need catering, raised $20 million in a new round of funding.

Subscribe to the 萝莉视频 Daily

Investors in the round, which was led by and former Whole Foods co-CEO , include actor , rapper and several NFL players. The new round brings Hungry鈥檚 total funding to $32.6 million, according to 萝莉视频.

Hungry previously raised its $8 million in April 2019, a round that was led by and , according to 萝莉视频. (the VC firm co-founded by Jay-Z, and ) and singer also participated in the round.

Usher鈥檚 mother owns a commercial kitchen in Atlanta and told her son about Hungry, company co-founder and COO Eman Pahlavani said in an interview with 萝莉视频 News. Usher then ended up investing in the Hungry鈥檚 Series A round.

Many chefs who are starting out or don鈥檛 have their own restaurants rent space in independent commercial kitchens. Hungry, which is based in the Washington, D.C., area, is a marketplace that connects those chefs to companies that need catering by handling all of the logistics and letting the chefs do what they do best: cook.

鈥淭he idea is chefs don鈥檛 like to do delivery, they don鈥檛 like to leave the kitchen and deliver food,鈥澛� Pahlavani said. 鈥淗ungry takes care of the delivery, the customer acquisition costs.鈥�

It鈥檚 a capital-efficient business model for Hungry because the company doesn鈥檛 own or operate the kitchens, Pahlavani said. The chefs are independent contractors, as are the 鈥渃atering captains鈥�–a fleet that delivers the food, sets it up at a company鈥檚 location and stays on site so the company doesn鈥檛 have to handle anything. Hungry brought on an employee who formerly worked in hospitality at to train the catering captains so the business could excel on the service side.

Hungry has rolled out its services in six cities so far, with Austin as the latest addition and the first market that isn鈥檛 on the East Coast. Dallas is up next, and Hungry plans on being in 23 markets by the end of 2021.

鈥淲e鈥檙e just rinse and repeating what we鈥檝e done in the past five markets, we鈥檙e just doing it faster and that鈥檚 what this funding is helping us do,鈥� Pahlavani said.

Hungry serves more than 500 companies across the country and its revenue has grown more than 300 percent year over year, Pahlavani said. The company got to a $20 million run rate last year, and expects to hit a $50 million run rate by the end of this year.

As for valuation, the company is past $100 million with this round, Pahlavani said, and it thinks it can reach unicorn status in the next few years.

Hungry has had more than 1,000 chefs apply to be on the platform, but the company only picks the 鈥渃ream of the crop,鈥� Pahlavani said. Each chef goes through a vetting process that includes a local tasting for Hungry鈥檚 office where employees rate the meals and then help coach chefs with menus and approve the final foods. Hungry now has more than 200 chefs on the platform.

Chefs鈥� gross revenue has ranged between $20,000 and $50,000 per month, Pahlavani said, and chefs typically take home more than 50 percent of that. Hungry tries to raise chefs鈥� profiles by featuring their photo and biography with signage at every event they cater.

鈥淲here the chefs need help is on the business side,鈥� Pahlavani said. 鈥淗ow do you bring on a customer 鈥� Hungry is that side of the business. We鈥檙e a business in a box for them.鈥�

Illustration Credit: