San Francisco-based Good Eggs, a grocery delivery service that specializes in locally sourced products, has raised $100 million to expand into Southern California.
Good Eggs said its most recent funding round was led by Glade Brook Capital Partners, and was joined by GV, Tao Invest, Finistere Ventures and Rich’s. The company received additional support from existing investors Benchmark Partners, Index Ventures, S2G, DNS Capital,and Obvious Ventures.
“Glade Brook Capital Partners is pleased to lead Good Eggs’ latest equity financing. The grocery market is undergoing fundamental change, and the shift to eCommerce and higher-quality products and services is accelerating,” said Glade Brook Partner JP Van Arsdale, who will join Good Eggs’ board of directors. “Good Eggs is experiencing rapid growth with strong unit economics and is well-positioned to become a category-defining leader.”
The company plans to launch its services in Southern California, a move that should triple its addressable market and potentially create up to 1,000 jobs. Citing Goldman Sachs, Good Eggs said the U.S. online grocery market is estimated to reach $150 billion in sales by 2026, with up to 15 percent of those sales expected to come from California’s metro markets. Good Eggs said it was able to grow its revenue to “nine figures” in 2020 while hiring more than 400 new employees.
Good Eggs also named Vineet Mehra as its new chief growth and customer experience officer. Mehra was most recently global chief marketing officer and chief customer officer for Walgreens Boots Alliance. He will oversee the building out of the company’s brand beyond the Bay Area.
“2020 was a transformational year for Good Eggs,” said Bentley Hall, CEO of Good Eggs, in a statement. “The support from our investors in this round, and the addition of exceptional executive talent like Vineet Mehra, validates the enormous potential of this opportunity and our increasing momentum. We are excited to establish our roots in Southern California, further expand our assortment and launch a number of improvements to our service soon.”
In a recent interview with PYMNTS, Hall said the company has been focusing on a particular demographic: professional women with children, aged 30 to 45, with an annual income over $150,000.
“For that core segment, Good Eggs is a utility that is necessary for their life,” Hall said, adding that those customers bring a “commitment and passion for the brand and dedicate a high level of spending, because for their family, Good Eggs is a convenient solution that doesn’t ask them to sacrifice quality.”