Overnight oats maker raises $20 million
TEMPE, ARIZ. — Oats Overnight, a manufacturer of spoon free, high protein oatmeal that is prepped at night and ready by morning, has raised $20 million in a Series A funding round that included Singh Capital Partners, BFG Partners, Impatient Ventures, Watchfire Ventures, Morrison Seger Venture Capital Partners, Vanterra Ventures, Access Capital and Pure Ventures.
Founded in 2016 by Brian Tate, Oats Overnight is made by combining 8-oz of milk or milk substitute with a pack of Oats Overnight in the company’s custom BlenderBottle. The mixture is then shaken and refrigerated overnight. After another shake in the morning the product is ready to consume.
The company said it is bringing consumers into the research and development process by communicating directly with them to determine which flavors to introduce. As part of the company’s R&D process, Oats Overnight each month shares a new flavor pre-launch with its more than 100,000 active subscribers. Three months after the survey is taken, the most popular flavors are introduced to the market. The company currently offers more than 35 varieties.
Oats Overnight said it plans to use the Series A funding to build an 85,000-square-foot production and fulfillment center in Phoenix to accommodate its 250-person staff. The company also plans to expand its sales team, beginning with the addition of a vice president of sales.
“We will use this capital to significantly expand into the retail channel and continue to evolve our community-led product development process,” said Mr. Tate, founder and chief executive officer.
The company said it is on a $100 million gross revenue run rate but is just scratching the surface in retail, with just 2,500 doors. Oats Overnight’s products are available at Whole Foods Markets, Wegmans, Meijer, Walmart and HEB.
“Owned manufacturing, fulfillment, and R&D is absolutely critical for the company to deliver on its model for innovation and product development,” said Vincent Comerford, chief operating officer.
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