E-commerce ventures centered around food continue to attract significant funding as investors seek sustainable consumer concepts. German startup Lanch, which leverages social media and influencers to create popular food brands and retail distribution networks, has recently secured €26 million (approximately $27 million) to expand its operations.
This Series A funding round was led by Felix and HV Capital. Lanch has raised approximately $34 million to date, indicating a valuation between $100 million and $150 million.
Lanch’s CEO, Nono Konopka, plans to utilize the funding to expand the business within Germany and explore additional markets.
Currently, Lanch has developed three brands: Loco Chicken, Happy Slice Pizza, and Happy Chips (potato chips). The company’s unique formula involves analyzing social media and online activity to identify market gaps, and collaborating with creators and influencers to launch and promote food products.
This approach has proven successful, with Lanch expanding to 350 ghost kitchens and numerous franchise stores in just over a year since its commercial launch. Loco Chicken has gained particular popularity, while Happy Chips are now available in over 10,000 supermarkets.
Lanch’s rise highlights the growing number of tech companies leveraging social media and data to create innovative products. Konopka emphasizes that Lanch’s data-driven approach gives the company a competitive advantage in site selection and product development.
However, the food-based tech industry has experienced challenges in the past, with several fast-delivery and online grocery startups failing. Lanch’s focus on cost efficiency has been attractive to investors, potentially mitigating some of the risks associated with food-related ventures.
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