French startup Chefclub announced earlier this week that it has raised a $ 17 million funding round led by First Bridge Ventures. SEB Alliance, the venture arm of the appliance manufacturer Groupe SEB, Korelya Capital and Algaé Ventures are also participating.
Chefclub has built a major media brand on social media platforms. It has attracted a huge following that doesn’t look bad next to the well-funded media brands Tastemade and Tasty.
I’ve covered the company at length before, so I encourage you to read my previous company profile:
Chefclub is an interesting lesson on the sales funnel. It has a huge top of the funnel with 100 million YouTube, Snapchat, Instagram, and TikTok subscribers. In total, they generate over a billion views per month.
The company relies on this audience to create new products. It starts with cookbooks, of course. Chefclub has sold 700,000 books to date. Since these books are self-published, the company keeps a good chunk of the revenue.
More recently, the startup launched kids’ cooking kits with colorful measuring cups, kitchen accessories, and easy-to-understand recipes. 150,000 people bought a children’s product.
Chefclub now wishes to display its brands in stores through partnerships. This is why having Groupe SEB as an investor makes sense. You can imagine co-branded articles boosted by a promotion on Chefclub accounts.
Finally, the startup plans to enter a new market: consumer products. It’s the same thought behind it, except we’re talking about food. It’s interesting that Chefclub doesn’t think online ads are the future of the business. And it seems like a smart move during the current economic crisis.