Business model

With a new business model, Crafty raises $10 million

Photo: Crafty

Snacks and meals in the office are some of the best perks of the office. It saves time in the morning without having to prepare a lunch and it saves employees having to go to the nearest fast food restaurant. While food has often been a staple of office work, remote employees have often been on the sidelines and often had to stock up on food during the workday. Crafty, a Chicago-based food supplier, is trying to change that by providing food to remote offices and employers, and it recently secured more funding to expand.

On Tuesday, the local food platform announced that it had raised a $10 million Series A funding round led by Tribeca Venture Partners. With the new funding, the company told Built In that it is looking to expand into more markets and grow its workforce.

“It’s hard to describe how meaningful this round of funding means to our entire team, especially after weathering the impact of the pandemic on our business,” Crafty co-founders Nate Rosenstock and Ishan Daya said to Built In by email. “We’ve faced the bottom, but our team is so resilient, nimble and imaginative, and in the midst of the toughest challenge we’ve faced as a team, we’ve emerged with a new business model that has allowed us to pivot operations to a more scalable asset-light platform for in-office and remote teams across the globe.”

Crafty was launched in 2015 as a centralized platform where businesses and workplaces could shop for everything from products to soft drinks and snacks to stock their office lunchrooms. In addition to providing party services, Crafty also sources food and produce and then delivers orders to offices. But when the pandemic hit and employees were sent home, the business took a hit as orders stopped coming in.

In January 2021, the company launched Crafty in a Box, a new business model that targeted its food services to companies employing remote workers as well as office workers. Since then, the company has grown 800% and grown from two markets to nearly 30, six of which are international, according to Crafty.

“If the pandemic has taught us anything, it’s that change is inevitable. As a complete solution for all work styles – in-office, hybrid and remote – Crafty gives our customers the flexibility they need to adapt to the changing needs of their workforce,” said Rosenstock and Daya. “For our customers, one of the biggest challenges they face is unpredictability. Not only are return-to-work dates changing, but entire work style strategies are also changing. Crafty is uniquely positioned to be able to serve all of our clients’ employees, no matter where they work and no matter how they work.

Crafty in a Box works by providing remote workers with Crafty Credit which they can then use to browse and purchase desired snacks from the startup’s website and have them delivered to their homes.

With the new funding, Crafty told Built In it will continue to expand into new markets. As it grows, it wants to remain accessible to small and medium-sized businesses rather than large corporations.

The company will also use the funding to increase its workforce. It currently has about 130 employees and plans to double its workforce over the next two years. Crafty is headquartered in Chicago but has offices in the Bay Area and New York, in addition to remote employees across the country.