Lanch bags $27M for a social media-skewed take on fast food

E-commerce startups in the food industry are continuing to attract significant funding as investors seek scalable consumer concepts. Lanch, a Germany-based startup utilizing social media and influencers to create popular food brands and distribute them through retail networks, recently closed a €26 million ($27 million) funding round to expand its operations.

The Series A round, co-led by Felix and HV Capital, marks a significant milestone for Lanch, which has raised a total of $34 million to date. With plans to use the funding to further expand in Germany before entering new markets, co-founder and CEO Nono Konopka is optimistic about the company’s growth trajectory.

Lanch has already launched three successful brands, including Loco Chicken, Happy Slice Pizza, and Happy Chips (potato chips). By leveraging data from social media and collaborating with influencers, the company plans to introduce more innovative food products to its portfolio.

Since its commercial launch, Lanch has established 350 ghost kitchens producing its popular food items, which are primarily distributed through food delivery platforms. Partnering with prominent social media personalities has helped Lanch achieve viral success, attracting a significant following in Germany.

Konopka envisions Lanch becoming a major player in the food industry, aiming to replicate the success of brands like Raising Cane’s or Chick-fil-A. With products already available in over 10,000 supermarkets, Lanch is poised to introduce new snack offerings in the near future.

By harnessing the power of social media and data analytics, Lanch exemplifies a new breed of tech startups focused on leveraging digital platforms to drive product innovation. Konopka emphasizes the company’s tech-centric approach, highlighting the valuable insights gained from data analysis.

Despite the challenges faced by food-based tech startups in the past, Lanch’s efficient cost structure and strategic marketing initiatives have resonated with investors. By prioritizing profitability and sustainable growth, Lanch aims to avoid the pitfalls that have plagued other companies in the industry.