Westchester-based healthy snack food company PeaTos has raised $12.5 million in a Series B funding round led by cereal giant Post Holdings, Inc., known for brands such as Honeycomb and Raisin Bran.
PeaTos, which makes chips out of peas, will use the funds to continue operations, expand brand partnerships and “strengthen relationships” with its digital fanbase, the company said in a press release.
“We are honored by this investment from Post and their confidence in the PeaTos brand,” Nick Desai, founder and chief executive of PeaTos, said in a statement. “Post has a long history of success in the (consumer packaged goods) space and we are honored to have them as part of our mission! The proceeds of this funding round will give us the ability to further execute on our ambitious strategic plan.” PeaTos will also use the funding to expand its reach with traditional retailers. Right now, PeaTos products are sold in 4,700 grocery locations, including major grocers such as Vons, Safeway Inc. and Sprouts Farmers Market Inc.
The funding raise comes less than six months after the company closed its $7 million Series A round led by Chicago-based Jackson Springs Management Partners and Covington, Ky.-based Connetic Ventures.
PeaTos was founded in 2018 to rival major snack companies such as Frito-Lay, Inc. that were making snacks made from peas instead of corn and without artificial flavoring.
In May, the company launched a new website that it said helped grow its direct-to-consumer business with the addition of subscription and loyalty programs.
For reprint and licensing requests for this article, CLICK HERE.