Oats Overnight (OON) announced that it has raised $35 million in Series B funding. This funding round was led by Enlightened Hospitality Investments (EHI) with participation from new investor Sonoma Brands Capital and from existing investors including Impatient Ventures, Singh Capital Partners, Morrison Seger Venture Capital Partners, and BFG Partners.
Enlightened Hospitality Investments is an investment firm that fuels growth in people-first organizations. And co-founder and Managing Partner Danny Meyer along with the rest of the EHI team brings their expertise and experience in consumer-facing businesses to the venture.
Launched in 2016, Oats Overnight brings customers directly into the R&D process. Every month, a new product is shared pre-launch with over 250,000 active subscribers and the R&D team communicates directly with customers to understand how the product is received. And after the survey results are reviewed, the team decides whether to launch the product, as well as what tweaks to make to the formula. The best of these products end up online, as well as on retail shelves like Walmart, Target, Whole Foods, etc.
To support iterative product development and its growth, Oats Overnight made significant investments into its manufacturing facilities. And the company opened a new 62,000-square-foot facility in Ohio in 2023 and an 86,000-square-foot facility in Arizona in June of this year. This capital investment will continue to support the build-out of the company’s manufacturing, fulfillment, and product development capabilities.
KEY QUOTES:
“We are thrilled to have EHI as a partner on this next chapter of growth. This capital will help us continue our expansion in the retail channel, further develop our manufacturing and distribution footprint, and drive new innovation in collaboration with our community of subscribers.”
- Brian Tate, founder and CEO of Oats Overnight
“We are proud to partner with Oats Overnight to join them on their mission to make nutrition both craveable and convenient. We are impressed by their innovative approach to product development and ability to commercialize product lines across digital and retail footprints.”
- Danny Meyer
“Now more than ever, consumers are looking for protein-rich, craveable food. Our model allows us to create products that meet these expectations faster than ever before. Working directly with subscribers to fine-tune these formulas pre-launch ensures our innovation pipeline is always in line with consumers evolving preferences.”
- Nina McKinney, Oats Overnight Chief Strategy Officer
“Controlling the process from procurement to fulfillment has been a key tenet of our business since inception. Complete ownership of our supply chain increases resilience while owning manufacturing allows us to produce high-quality products in an iterative way. This process is critical for executing our product development strategy.”
- Vincent Comerford, Oats Overnight Chief Operating Officer
