Oats Overnight, the US retail and online business, has raised $35m in a new funding round from a group of investors.
The Series B financing builds on the circa $20m-plus the oatmeal shakes maker received last year, which was used to fund a new factory in Phoenix, Arizona.
That 86,000-square-foot facility opened in June, adding to the company’s inaugural plant, a 62,000-square-foot site in West Chester, Ohio.
Oats Overnight, set up in 2016 by former professional poker player Brian Tate, said the fresh funds will “support the build-out of the company’s manufacturing, fulfilment, and product development capabilities”.
Since starting out, Oats Overnight said it has introduced more than 50 flavours of its spoon-free, high-protein and gluten-free oatmeal drinks. The company first tests the market with its approximately 250,000 subscribers before rolling out new products online and in retail.
Bricks-and-mortar customers include Walmart, Target and Whole Foods Market.
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CEO Tate said: “This capital will help us continue our expansion in the retail channel, further develop our manufacturing and distribution footprint, and drive new innovation in collaboration with our community of subscribers.”
Just Food has asked Oats Overnight for more details on its retail and manufacturing plans, funding and revenue generation.
The business attracted a new investor in the Series B – US-based private-equity firm Sonoma Brands Capital.
The round was led by Enlightened Hospitality Investments (EHI), a growth fund in New York, in participation with returning investors Impatient Ventures, Singh Capital Partners, Morrison Seger Venture Capital Partners, and BFG Partners.
EIH co-founder and managing partner Danny Meyer said: “We are proud to partner with Oats Overnight to join them on their mission to make nutrition both craveable and convenient.
“We are impressed by their innovative approach to product development and ability to commercialise product lines across digital and retail footprints.”
Oats Overnight’s CSO Nina McKinney said the company’s success is built around working with subscribers to “fine-tune” formulas prior to launch, while COO Vincent Comerford added that in-house manufacturing “allows us to produce high-quality products in an iterative way”.
