Louisville, Colo.-based Door to Door Organics has secured $25.5 million in financing to fund expansion into new markets.
The investment was led by the Arlon Group, a New York-based food investment firm, along with Greenmont Partners II, an investment fund based in Boulder, Colo., according to a news release from Door to Door Organics.
A natural foods and organic online grocer operating in 30 cities including Denver, Kansas City, Philadelphia, Detroit and Chicago, Door to Door Organics will use the funds to accelerate expansion to new markets, according to the release.
The company has made more than 1.7 million deliveries since 2005 and projects driving more than 37,000 new customers by the end of this year, according to the release.
Michelle Brooks, a managing principal at Arlon Group, and Alexander Bernstein, a principal at Arlon Group, will join the company’s board of directors.
Door to Door Organics is poised to take advantage of the expected growth of online grocery sales, according to the release.
Now only accounting for 2% of $650 billion in annual domestic grocery spending in the U.S., online sales of grocery products are expected to account for 11% of the total market by 2023.
“The incredible growth of the online grocery industry in recent years has led to an extremely high amount of investment and innovation,” Brooks said in the release. “We’ve been studying the online grocery industry since 2010 and Door to Door Organics is one of the few companies in the industry that has a proven model for growth and a demonstrated record of profitability.”
Door to Door Organics, with 200 local grower partners, offers customers a convenient way to shop and support local farming and artisan initiatives.
Chad Arnold, chief executive officer for the company, said financing from the Arlon Group will energize the company’s expansion effort at the same it will support a sustainable e-commerce grocery business model.
“Our focus is on high quality fresh food and helping people make great meals, not replacing all the other stuff that you can get at the grocery store,” he said in the release.