Musicians Jay-Z and Usher are now investors in a Virginia food delivery company.
On Tuesday, Hungry, which is based in Arlington and offers food from independent chefs, announced it had raised $8 million with the help of celebrity backers like the musicians. The company has raised a total of $12.5 million since its launch in 2016.
Company founders Eman and Shy Pahvelani say they grew tired of ordering unhealthy food for office meetings and wanted fresher options. That’s why they launched Hungry.
Jeff Grass, the company’s chief executive, said Hungry was “very fortunate” during its first round of fundraising, which surpassed its initial goal of $4 to 5 million. The startup is among the first ventures supported by Jay-Z’s firm, Marcy Venture Partners.
Grass said the money raised will help Hungry expand along the East Coast while improving its digital infrastructure.
“The expectations have gone up quite a bit, so we really do need to execute well to help take Hungry to the next level,” he said.
Hungry currently operates in D.C. and Philadelphia, and approximately 60 chefs from the region have signed on with the platform. In preparation for next month’s launch in Atlanta, Hungry began researching shared kitchen spaces for their chefs.
When they made a call to J’s Kitchen, a food incubator run by Jonetta Patton in Georgia, they had no clue it would be Usher’s mom answering the phone.
“The synergy between Hungry and J’s Kitchen was just a match made in heaven,” Patton told WAMU.
Chefs are required to prepare food out of licensed, commercial kitchens by law. Food incubators, like the one run by Patton, provide the space and business development advice for professional cooks. Pahlevani said the relationships are mutually beneficial.
“We partner with these kitchens and it’s a really good relationship,” Pahlevani said. “They’re providing where they work, and we provide the sales, marketing and get the chef’s name out there.”
Renting space in shared kitchens also provides flexibility for chefs to create their own schedules, showcase their best meals to clients, and according to Grass, earn up to $30,000 per month.
How hard was it for Patton to convince her Grammy-award-winning son to invest in the startup? She said it “wasn’t a hard sell at all.”