Dive Brief:
- Pantry essentials brand Momofuku Goods announced Monday that it raised $17.5 million in a Series A funding round, according to a press release emailed to Retail Dive.
- The funding was led by Siddhi Capital, a growth equity firm that is also invested in brands such as Ripple plant-based milk, Magic Spoon cereal and Aura Bora sparkling water.
- Momofuku Goods — a CPG brand spun off from the Momofuku restaurants — plans to use the funding to grow product offerings and support its growing operations, which will include scaling its team and marketing efforts.
Dive Insight:
For Momofuku Goods, the fresh capital will hopefully enable it to grow into a household name.
"We spent a decade testing and developing our pantry essentials, ensuring that they were up to the standards we uphold in our restaurants," David Chang, founder of Momofuku and Momofuku Goods, said in a statement. “With this investment, I’m looking forward to bringing even more flavor to home cooks’ kitchens.”
Spun out of Momofuku in 2020, the brand sells pantry items such as its chili crunch, air-dried noodles, soy sauce and seasoned salts. It has “a thriving direct-to-consumer business,” and also sells through wholesale partners such as Whole Foods and Target.
Restaurateur David Chang co-founded Momofuku Goods with Marguerite Mariscal and the team behind Momofuku with the goal of redefining the American pantry. Its chili crisp product was released in April 2020 to a 20,000-person waiting list.
It isn’t the only brand selling a version of the spicy condiment, though.
Fly By Jing — launched in 2018 and known for its Sichuan chili crisp — earlier this month announced it raised $12 million in a Series B funding round. The Chinese food brand already sells DTC and through retailers such as Whole Foods, but plans to use the funds to grow its wholesale business with partners like Kroger and Albertsons.
A variety of new CPG food brands have been moving onto store shelves during the past few years, bringing a more diverse and bright set of options to customers. Retailers like Foxtrot have even centered themselves on providing such offerings, working with brands local to its stores and using proprietary software that makes it easier for the company to work with smaller makers.
