Food delivery startup Grain gets funding from NSI, 500 Startups, DMP, Thai Express founder

Grain, a food delivery startup in Singapore that promises healthy food “in a heartbeat,” has raised an undisclosed amount of funding in a series A round led by NSI Ventures. 500 Startups, Digital Media Partners, and Thai Express founder Ivan Lee also participated. A source familiar with the deal tells us it’s worth S$2.45 million (US$1.70 million).

“This means we will be able to build up better infrastructure to help everyone eat better and conveniently,” it said about how it intends to use the funding. The company is looking out for a marketer, web and mobile developers, and an office manager.

Grain said its weekly recurring customers include Microsoft, Palantir, Facebook, and Uber. Without revealing actual figures, the company disclosed that it grew 30 percent in Q4 2015.

The slate of investors includes strong expertise in the F&B industry. NSI Ventures founding partner Hian Goh sold off the Asian Food Channel before starting NSI.

Ivan’s operational expertise and networks will certainly boost Grain, which operates its own kitchen. Unlike Foodpanda, Grain runs the entire stack, from cooking to packaging to delivery. The approach requires tons of capital but could be more profitable in the long-run.

The Thai Express founder appears to be more active in startup circles these days.

Grain’s user experience is probably much better too. I find Foodpanda’s user experience woefully lacking, and I’m not alone. Still, the company’s in a competitive space. Uber and Go-Jek are testing food deliveries. Smaller competitors span the spectrum, from cheap to expensive, from ready-to-cook to ready-to-eat. Grain sits firmly in the middle when we talk about pricing.

The startup’s dishes cost between S$9.95 to 12.95 (US$6.91 to 9.00), and beverages between S$4.95 to 7.00 (US$3.44 to 4.86).

Not as cheap as hawker fare, but affordable enough that I won’t mind eating Grain once a week. There are no delivery fees in designated hot zones, which are concentrated in Singapore’s central business district.

For everywhere else, a flat fee of S$9.50 (US$6.60) applies. Grain does catering too for events and companies.

The Thai Express founder appears to be more active in startup circles these days. This is his second announced startup investment. He has put some money in beauty services booking site Vanitee’s US$3.5 million funding round.

Grain first disclosed its latest investment in an email sent to users (below). It later sent out a press release.