After raising more than $56 million in venture capital, a Silicon Valley food delivery startup is shutting down, according to sources cited in The Information.
Sprig, an on-demand meal delivery service based in San Francisco, was losing “six figures monthly” and struggled to break into new markets. In 2015, it was valued north of $100 million.
A memo was posted online after the news broke.
“We apologize to those of you who relied on Sprig for daily meals, and to our extended Sprig team for how this will impact them,” wrote Gagan Biyani, a cofounder and the CEO. “Today, there are thousands of restaurants delivering amazing food to you; we’re hopeful for the future.”
Biyani, who says he is ” sad that the Sprig model did not work out” but observes that “the food delivery space on the whole is growing.” Calling food “a foundation of society,” the entrepreneur believes startups like his will be key to sustainable, ethical consumption of food at scale.