SnackMagic, a NYC startup offering a build-your-own snack box service, has raised $15 million in fresh funding to cap off a year of massive growth. The Series A was led by Craft Ventures, with participation from Luxor Capital, and will be used to further build out its warehouse capacity and logistics support for its growing line of products.
Claiming to be the first company of its kind, SnackMagic allows users to customize their own box of goodies. Recipients are gifted a certain monetary amount that they can then use to choose whatever snacks they want from the company’s extensive menu. The goal, says the company, is to enable personalized, stress-free gifting that is “infinitely scalable,” meaning it can service everything from single orders to batches of a thousand or more.
SnackMagic is a product of the pandemic, launched by lunch delivery startup Stadium. When the city went on lockdown in March, Stadium’s main clientele — employees working out of shared, physical offices — disappeared almost overnight, so the company had to pivot fast. Just a couple months later, it launched a service that allowed companies to send treats to their employees and clients who were working from home. Thus, SnackMagic was born.
Almost immediately, SnackMagic was a success. In an interview over the summer, co-founder and CEO Shaunak Amin told Built In that the business was doubling every week. “The reception since we’ve launched has been very, very positive,” he said. “It’s going way faster than we first expected.”
In the eight months since that interview, SnackMagic says it has gone from $0 in revenue to a $20 million revenue run rate, becoming profitable in December of 2020. It now counts organizations like Toyota, Microsoft, Amazon, Google, Harvard, Spotify and MIT as just a few of its customers.
“Our customer response over the last year has been incredible,” Amin said in a statement provided to Built In. “As our corporate customers and universities are showing us, the use cases for SnackMagic are endless.”
In a statement, Bryan Rosenblatt, a principal investor at Craft Ventures, attributes SnackMagic’s immediate success to “timing, innovative thinking, and world-class execution,” adding that its model will be a key “company culture builder” in our “flexible workplace future.” Indeed, just yesterday Alyce, another company in the corporate gifting space, raised $30 million amid a surge in demand. While the two companies don’t quite share the same model or purpose, this could indicate that personalized, corporate gifting is the way of the future when it comes to maintaining a positive work culture in a remote environment.
As for SnackMagic, the company says it plans to spend the next nine months broadening its build-your-own box concept into new product categories, including meal kits, alcoholic beverages and non-edible gifts like swag and gift baskets.
