Food delivery continues to be popular, but most of us use it to get what may not be the best food for us.
This is based in Austin Prado wants to change. CEO John Carter, former CEO of healthy food delivery service Snap Kitchen, launched the company in 2020 to provide a customized e-commerce platform for local food delivery companies.
Its technology allows users to combine what would normally be separate software programs for marketing, sales, fulfillment and perishables into one place so they can focus on making better-for-you meals.
Carter, whose experience also includes financial services and Live Nation Ticketmaster, knows what it’s like to live in a food desert, as well as 19 million other Americans, and have no access to fresh food. That’s why he wanted to create a better, more accessible set of tools for the meal subscription business.
“Losing my father to diabetes was a transformative moment for me when I wanted to tie my professional endeavors to something personal and apply technological transformation at scale to something worthy in its own right,” he told TechCrunch. “I took up food access, health and wellbeing and nutrition. Growing up, I was more likely to see a Burger King or a donut shop within 10 miles of where I grew up than a Whole Foods, and I wanted to do something about it.”
Now he is, and he’s doing so with a new cash infusion of $5.75 million in seed funding. Bonfire Ventures led the round and was joined by Slauson & Co., January Ventures, Alumni Ventures, Bridge Investment Group and Supply Change Fund.
The investment will be used to add to the team, scale the platform and bring on more trading partners in additional markets, Carter said.
Prado is a subscription-based service and offers two tiers, Pro for $49 per month and Enterprise for $199 per month. The price difference gets you access to API data, a monthly account review appointment, and personalized consulting.
Carter sees his company going up against the likes of delivery and fulfillment software companies, including Shopify, Happy Meal Prep, Bottle, Sprwt and EatFreshTech, but said Prado is unique in that it’s not just designed for perishable food and has an all-in-one platform, but also provides a more modern and customized technology stack for the back end of the user experience.
The company works with clients such as Everytable, Prep To Your Door and Lucky Lime. Carter declined to give any exact figures for its take-up so far, but said Prado’s annual recurring revenue has nearly tripled since January 2022.
Prado also has partnerships with delivery services, including DoorDash and ShipEngine, so that local food subscription services can get to the source and avoid frequent high fees associated with restaurant food delivery appsCarter said.
“We are looking to add more partners in the last mile logistics category and we are also very focused on integrations so that we build an ecosystem that adds value to what we have built,” he added.