Tovala raises fresh investment to grow meal delivery business

Meal service provider Tovala has raised $30m in a Series C funding round to accelerate the growth of the meal delivery and food technology business.

The latest funding round was led by investment group Left Lane Capital, with participation from previous investors Finistere Ventures, Comcast Ventures, OurCrowd, Origin Ventures, Pritzker Group Venture Capital and Joe Mansueto.

Launched in 2017 by David Rabie and Bryan Wilcox, Tovala is claimed to be a first-ever meal service paired with a countertop smart oven that scans, steams, bakes and broils its chef-crafted meals.

Tovala CEO David Rabie said: “Despite the pandemic, weather disasters, and a range of external challenges, we focused on delivering tens of thousands of meals each week to households that depended on our services.

“We are grateful to be a growing company during a difficult economic moment and we appreciate the partnership of Left Lane Capital to help our business reach more people in the months and years to come.”

The company will use the funding to open a new production facility, expand the team and improve customer experience.

Left Lane noted that it will be working closely with the Tovala team as it continues to scale its business nationwide.

Additionally, Left Lane Capital co-founder and managing partner Jason Fiedler will join Tovala’s board of directors.

Fiedler said: “The pairing of a meal subscription with a connected device has enabled Tovala to achieve a customer retention rate that is a step-function better than anything else we’ve seen in food delivery — in many ways similar to what Peloton achieved in a traditionally low-retention fitness industry.

“Our team brings a proven track record of investing in category-defining consumer subscription businesses, and we’re excited about Tovala’s potential to be the next major food tech company.”