Lunchbox Raised $20 million In Series A Funding
Lunchbox is a startup that allows restaurants to build ordering experiences on their own websites and apps. It has grown its customer base by 925% over the last year and announced that it has raised $20 million in Series A funding.
CEO Nabeel Alamgir knows the industry well (formerly Bareburger’s CMO) and he isn’t expecting restaurants to abandon third-party delivery platforms.
“You don’t want to lose a customer to these marketplaces,” Alamgir said. “You should be on these channels, but you should also invite your customers to order from you directly.”
That’s why Alamgir founded Lunchbox with Andrew Boryk and Hadi Rashid last year.
Lunchbox is currently working with chains and restaurant groups like Bareburger, Clean Juice and Fuku ( Customers usually see a 30% increase in sales). By next year, he’s hoping to move to a self-serve model, which would make Lunchbox accessible to small, independent restaurants.
Alamgir also noted that Lunchbox allows restaurants to embrace new business models, like delivery via cloud kitchens. He predicted that as investors look at new restaurant businesses post-pandemic, one of their key questions will be, “Can we open this on the third floor [where the rent is more affordable]? Can this be a delivery-only experience?” At the same time, he’s not suggesting that those will ever fully replace the dining experience in restaurants.
“The outfit and the mindset you have when go out to eat is different from when you eat at home and watch Netflix in your pajamas,” he said. “Those are different kinds of dinners, and with off-premise dining, there’s an opportunity to innovate significantly.”
The round was led by Coatue, with participation from 645 and Primary Ventures, as well as chef Tom Colicchio, Behance founder Scott Belsky, former Venmo COO Michael Vaughan, HelloFresh founder Bryan Ciambella, Planet Hollywood founder Robert Earl and Girls Who Code founder Reshma Saujani. Coatue’s Rahul Kishore and Bennett Siegel are joining Lunchbox’s board of directors.
“Local businesses have been hard hit this year, but we think Lunchbox can help enable these businesses to move online, engage with their customers digitally, and build back stronger than ever,” Kishore said in a statement.