Apeel, a California-based company tackling global food waste, said Wednesday it raised $250 million in a Series E funding round that values the company at more than $2 billion. That’s nearly double its last reported valuation of $1.1 billion from April 2020.
The company is known for its edible substance that, when applied to the outside of harvested produce, creates an invisible shield that can double its lifespan without refrigeration.
The product has been tested on dozens of different types of fruit and vegetables but is commercially available for avocados, organic apples, citrus fruits (like mandarins, lemons, and limes), and most recently, English cucumbers. In September, the company announced a partnership with Walmart (NYSE:WMT) to introduce "plastic-free" cucumbers in more than 100 retail locations throughout the U.S.
Apeel’s coating is extracted from lipids that come from the same produce to which the coating is ultimately applied. The water-based solution extends shelf life by preventing oxidation and water loss from the grocery store to the consumer’s home. Though, due to the proprietary nature of its science, Apeel does not disclose extensive details on the formula.
The idea has attracted a number of high-profile investors, including Singapore-based global investment firm Temasek, which led this round, as well as Katy Perry, Oprah Winfrey, the World Bank Group, Andreessen Horowitz, the Bill & Melinda Gates Foundation and new investors, including Anne and Susan Wojcicki of 23andMe and YouTube, respectively, and ex-powerhouse agent Michael Ovitz, co-founder of Creative Artists Agency.
