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Investment in meal kit company to facilitate company's growth into new markets

Vancouver, BC, September 3, 2021--(T-Net)--Vancouver-based meal kit delivery service company Fresh Prep announced today that it has completed its $21 million Series-B financing round.

The round was led by Yellow Point Equity Partners, a private equity investment firm headquartered in Vancouver, B.C., along with support and participation from Renewal Funds, which led the company's Series A round.

Funds raised over the six-year-old company's history now total over $35 million CAD.

"Fresh Prep is a uniquely innovative player in the meal kit delivery space," said Dave Chapman, Managing Partner of Yellow Point. "Its substantial growth to date has been underpinned by the management team's commitment to their values of sustainability and customer focus. We believe these values, exemplified by the company's innovative Zero Waste Kit and carbon neutrality commitment, will resonate with customers across the country."

Fresh Prep is one of the fastest growing businesses in Canada, having grown revenue by 540% over the last three years while exceeding income targets. With COVID-19 driving increased interest in the meal kit industry overall, Fresh Prep's responsiveness and agility have allowed it to provide uninterrupted service to its customers in a time of need and remain well positioned for future growth.

Husein Rahemtulla, COO and Co-Founder, Fresh Prep 

"We have proven out the profitability of Fresh Prep's business model. While our profits are currently reinvested back into our business as we're focused on growth and innovation, we know that our underlying fundamental model is sound." says Husein Rahemtulla, Fresh Prep COO and Co-Founder. "Because of this, Fresh Prep and its Board are confident in making the upfront investment in expansion with the knowledge it will generate returns into the future."

The additional capital raised will enable Fresh Prep to continue to accelerate growth through talent acquisition, automation, new products, and geographic expansion.

Dhruv Sood, Co-CEO and Co-Founder, Fresh Prep

Fresh Prep is the only meal kit company in Canada that employs its own delivery drivers for meal kit delivery and offsets all of the emissions from its deliveries with carbon credits. "We pride ourselves on being a vertically-integrated food company that is deeply supported by technology and innovation in logistics, giving us access to real-time tracking, and the ability to adapt to our customers' changing lives," says Dhruv Sood, Co-CEO and Co-Founder.

Currently, Fresh Prep is a team of over 350 strong employees and services tens of thousands of customers across B.C.

About Fresh Prep

Fresh Prep is a meal kit delivery service based in Vancouver, BC. Founded in 2015, Fresh Prep delivers everything needed to make meals at home using fresh ingredients in 30 minutes. With a focus on sustainability, pre-chopped ingredients are delivered in reusable cooler bags with fresh, locally-sourced ingredients whenever possible.

Meals are affordable, diverse, and fit the needs of individuals, couples or families. This service is currently offered in over 20 municipalities throughout the Lower Mainland, the Okanagan, and Vancouver Island. Fresh Prep is a Certified B Corporation®, dedicated to doing business in the most responsible way, balancing purpose and profit.

For more information, please visit: freshprep.ca

About Yellow Point Equity Partners

Yellow Point Equity Partners has been actively helping its management partners build better businesses for over 17 years. The firm invests in outstanding management teams of later-stage growth companies based primarily in Canada and aims to be the long-term partner of choice for Canada's leading mid-market companies. For more information, please visit www.ypoint.ca.

About Renewal Funds

Renewal Funds is a mission venture capital firm investing in early growth stage companies in Canada and the United States, focusing on environmental technology and sustainable consumer products.. For more information, please visit www.renewalfunds.com.