03 Mar, 2023, 15:00 ET
TEMPE, Ariz., March 3, 2023 /PRNewswire/ -- Oats Overnight announced today that it raised $20M+ in Series A capital. Participants in the round included Singh Capital Partners, BFG Partners, Impatient Ventures, Watchfire Ventures, Morrison Seger Venture Capital Partners, Vanterra Ventures, Access Capital, Pure Ventures, and more.
"We will use this capital to significantly expand into the retail channel and continue to evolve our community-led product development process." - Brian Tate, Founder and CEO.
Oats Overnight is redefining the way CPG brands interact with their consumers, bringing customers directly into the R&D process. Every month, a new flavor is shared pre-launch with 100,000+ active subscribers and the R&D team communicates with customers directly to hear how the recipe is received. Flavors like Chocolate Chip Cookie Dough, Cookies and Cream, and Key Lime Pie, get very vocal feedback from the community, both positive and negative. The most popular flavors are released with tweaks just three months after the extensive survey results are tallied.
"Our customers debate it all in our private Facebook group, averaging over 1,000 comments per day." - Brian Tate, Founder and CEO.
The company is on a $100M+ gross revenue run rate, but is only getting started in retail, sitting at just over 2,500 doors. On-shelf performance is beating buyer expectations in a wide range of stores, including Whole Foods, Wegmans, Meijer, Walmart, and HEB. This new capital will help build out the sales team, starting with the addition of a VP of Sales.
"The uniqueness in format and flavors that we bring to a traditionally stale category makes us a clear bet for buyers. This capital will help us execute even faster." - Nina McKinney, CSO.
Another primary use of capital for the fundraise will be the buildout of a new 85,000 sq ft production and fulfillment center in Phoenix, AZ. Oats Overnight's 250 person team includes multiple food scientists, a supply chain team, and a quality department. This structure allows Oats Overnight to be responsive to customer feedback with monthly flavor launches and consistent optimization of formulas in-market.
"Owned manufacturing, fulfillment, and R&D is absolutely critical for the company to deliver on its model for innovation and product development." - Vincent Comerford, COO.
About Oats Overnight:
Oats Overnight is a spoon free, high protein oatmeal that is prepped at night and ready when you wake up. The company was founded in 2016 by former professional poker player, Brian Tate in Tempe, AZ. He created the first recipes while looking for a better way to fit a nutritional breakfast into his busy schedule. Over 35 flavors have been created to date in their owned manufacturing operation in Arizona. To learn more about Oats Overnight, visit oatsovernight.com or @oatsovernight on Instagram.
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