LOS ANGELES — Sustainable snack startup Spudsy has raised $3.3 million in a Series A funding round led by KarpReilly and Stage 1 Fund. The company has raised a total of $6.5 million in two years.
Spudsy sources imperfect sweet potatoes to produce puffed snacks in a variety of flavors, including barbecue, vegan sour cream and onion, vegan ranch and cinnamon churro. Earlier this year, the brand added a line of sweet potato fries in hot, vegan ranch and sea salt flavors. The company plans to use the funding to develop sales and marketing strategies, build out its direct-to-consumer business and expand its reach to new consumers in new channels, said Ashley Rogers, founder and chief executive officer.
“It was really important to our team that we find partners that share the same vision, passion and goals as we do around making snacks that taste good and do good for the environment,” Ms. Rogers said. “KarpReilly and Stage 1 Fund really understand our mission and as a result of their vast network of industry experts we have been able to scale our brand at a more rapid pace.”
Spudsy products are available online at spudsy.com and at retailers including Kroger, Whole Foods Market, Wegmans and H-E-B.
Ms. Rogers, who previously founded nutrition brand Buff Bake, combined her passion for sweet potatoes and healthy snacking, tapping into the popularity of puffs, to launch the brand three years ago. The company is on track to rescue 1 million imperfect sweet potatoes by the end of the year.
“Spudsy is one of the most exciting emerging food brands on the market, and we are thrilled to have this opportunity to be a partner to them,” said Billy Logan, partner at KarpReilly. We are looking forward to helping the brand continue its growth and product innovation.”
Ms. Rogers said she sees opportunities to expand into additional product categories, such as frozen waffles, pizza crust, pasta and tortillas formulated with sweet potato flour.
“Really anything made with carbs, Spudsy can be,” she said. “My biggest goal is to be a household name.”