Blendid

Automated robotic, contactless, and AI-enabled food preparation for fresh healthy smoothies made on-demand

Analytics

Raised to Date: Raised: $460,051

Aggregate Commitments $

Platform

Microventures

Start Date

11/11/2020

Close Date

02/28/2021

Min. Goal

$50,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

Convertible Note

Funding Type

RegCF / RegD 506(c)

Series

Series A

Valuation Cap

$50,000,000

Discount Rate

20%

Rolling Commitments $

Status
Funded
Reporting Date

03/03/2021

Days Remaining
Funded
% of Min. Goal

920%

% of Max. Goal

43%

Likelihood of Max
Funded
Avg. Daily Raise

$4,221

# of Investors

776

Momentum
Funded
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Location

Sunnyvale, California

Industry

Food, Beverage, & Restaurants

Tech Sector

Foodtech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Business Type

Growth

Blendid, with a valuation cap of $50 million, is raising funds on MicroVentures. The company makes robotic food automation solutions powered by artificial intelligence. The first product of Blendid is a robotic kiosk that makes healthy smoothies on demand and based on the taste and preferences of customers. Vipin Jain, Venki Ayalur, and Vijay Dodd founded Blendid in 2015 and have raised over $13 million in previous rounds of financing. The current round of crowdfunding has a minimum target of $50,000 and a maximum target of $1,070,000, and the proceeds will be used for marketing, manufacturing, research and development, future wages, repayment of the debt, and general working capital. Blendid already has four kiosks deployed in the San Francisco area and has signed an agreement with Walmart to deploy its kiosk at its Fremont, California location.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$83,346

$2,159

COGS

$93,715

$0

Tax

$2,537

$0

 

 

Net Income

$-4,088,468

$-3,028,418

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$4,309,340

$1,881,453

Accounts Receivable

$15,541

$0

Total Assets

$5,566,553

$1,961,546

Short-Term Debt

$918,583

$271,705

Long-Term Debt

$514,003

$733,924

Total Liabilities

$1,432,586

$1,005,629

Financials as of: 11/11/2020
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Blendid 06/10/2023 Dalmore Group $78,321,576 $3,895,675 Equity - Preferred Active RegA+
Blendid 11/19/2021 StartEngine $56,927,498 $1,414,365 Equity - Common Funded RegCF
Blendid 09/24/2021 StartEngine $49,943,429 $2,000,065 Equity - Common Funded RegCF
Blendid 02/28/2021 Microventures $50,000,000 $460,051 Convertible Note Funded RegCF / RegD 506(c)
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

The global smoothie industry total available market has been estimated at $12 billion in 2019, and it’s expected to grow to $17 billion by 2025 (at a rate of 10.1%). Food tech has been an industry on the rise during the COVID-19 pandemic — the global food robotics market is worth $1.9 billion in 2020 and is set to reach $3.35 billion by 2025 with a CAGR or 13.1%.

Blendid is a company that builds robotic and AI food solutions — its first product along these lines is a fully autonomous smoothie kiosk. The company raised $9.7 million dollars in Series A funding in 2019 — illustrating that multiple third-party entities view Blendid as having a bright future.

The company has seen successful kiosk launches on various college campuses, like the University of San Francisco and Sonoma State University. Blendid also has inked a deal with Walmart to open kiosks in the U.S retail giant — starting with Walmart’s Fremont location. The company is also in talks with global and regional food service locations, to bring the product to more businesses, colleges, hospitals, stadiums, airports, and shopping malls.

Blendid’s current MicroVentures raise has been rated a Deal to Watch rating by the KingsCrowd investment team.

Price

Blendid is raising at a $50 million valuation cap with a 25% discount. That valuation is quite high at this stage of business. This is especially true when you consider the company’s notably high burn rate — it saw net losses of $3,021,123 and $4,003,577 in 2018 and 2019, respectively. Thus, Blendid’s price score is weak as well as the company’s lowest across all five metrics.

Market

At the moment, Blendid only operates automated smoothie kiosks. The smoothie market in the United States is estimated at $5.5 billion (globally, $34.2 billion and growing at a CAGR of 7.7%). The industry does have competitors, most notably Jamba Juice and Smoothie King. The former, as of 2019, operates 864 stores and saw $71 million in revenue on their most recent annual report (2017). Smoothie King has been around since 1973, and in 2018, saw sales of $435 million. Name recognition plays an important role in the food and beverage industry, Blendid certainly has ground to make up in the department. One thing going for Blendid, however, is its technological aspect. 

The food robotics industry is a small, but continuously growing industry. The COVID-19 pandemic has proven to consumers that tech and automation are the way of the future. A company like Blendid is well suited to capture much of the $1.9 billion market size (which, as noted previously, is set to grow up to $3.35 billion by 2025). Venture Capital firms are continuing to see the upside in companies like Blendid, with investments into food tech continuing to rise year to year.

Blendid’s technology could be the company’s way to access more of the smoothie market, all while keeping their number of locations minimal. The company has already signed agreements with two large global food and retail brands, signifying that the licensing side of their business already has traction. However, due to the current small size of the food robotics industry and the steep competition Blendid will face in the smoothie market, the company’s market score is slightly below average.

Team

Blendid’s team brings decades of experience in business, engineering, and product design. Co-founder and CEO Vipin Jain has nearly 30 years of experience in business and entrepreneurship. He formerly worked as CEO of Retrevo — a machine learning company aimed at improving the shopper experience which was acquired by Barnes & Noble. After that exit, Jain functioned as VP of Sales and Customer Care at Barnes & Nobel Nook.

Jain is joined by co-founder and CTO Venki Ayalur, who was the mastermind behind the software and hardware products for Barnes & Noble Nook and Motorola Mobile. The third member of the founding team is Vice President of Engineering, Vijay Dodd. Dodd has worked at tech companies such as AT&T, Palm, as well as Barnes & Noble Nook.

The founding team of Blendid is extremely capable, with a long background with tech and business. All three founders have worked together before, which is another sign of strength for the team. It’s also promising that Jain has experienced a successful exit at a previous startup. As a result, Blendid’s team score is quite high.

Differentiators

Blendid blends together the food industry with a sleek, cutting edge tech spin that makes it a smoothie company poised to grow in the future. With the ease of the Blendid app, customers can pay in whatever way is easiest for them (Apple Pay, Google Pay, credit cards, and even student meal plans, wherever applicable) without needing to interact with any other people. The company’s app works in the customer’s favor as well as the kiosk operator. Customers get to input their order into the app and watch as it’s created in front of their eyes. Operators can get notified when ingredients need to be restocked or when there is an issue that needs troubleshooting. The entire smoothie creation process is carried out by robots, which is a novelty that can’t be claimed by Jamba Juice or Smoothie King. In an era where social distancing is the norm, Blendid has a competitive advantage over rivals by providing a completely automated, contactless smoothie experience.

Blendid’s technology is patented and isn’t just related to smoothie making. The company’s intellectual property encompasses robotic food preparation technology with artificial intelligence, computer vision, and distributed software processing. These patents give Blendid the freedom to expand its business to other food items — and the company expressly states that this type of expansion is their ultimate goal. A smoothie experience that’s unlike any competitor’s paired with strong intellectual property yields Blendid a very high differentiators score.

Performance

Blendid has, since its inception, generated $149,624 in total revenue. Revenue had been increasing every quarter since Q1 of the 2019 fiscal year, but the shelter-in-place orders that were instituted around the country put a pause on Blendid’s operations.

Blendid does have a very high burn rate, racking up $1.5 million, $1.3 million, $1 million, and $968k in expenses throughout the 2020 fiscal year. All of this adds up to a net loss of just under $4 million in 2020.

However, Blendid has also been focused on getting its smoothie kiosks out into the world. It has four fully operating kiosks in place throughout the San Francisco area. Additionally, Blendid has signed a letter of intent with Walmart for further kiosk expansion. This strong early traction balances out Blendid’s financial numbers, resulting in a strong performance score for the company.

Bearish Outlook

The COVID-19 pandemic has impacted many industries, food services being one of the most notable. Blendid has a high burn rate, so the longer the pandemic goes on and the less revenue that comes in, the higher the likelihood of financial troubles. The company’s extremely high valuation this round may also be too steep for some investors. Lastly, Blendid will have to put significant efforts into creating a brand name for itself as it expands and finds itself competing with well-known entities like Jamba Juice and Smoothie King.

Bullish Outlook

Blendid’s customer experience is extremely unique, and there is already early traction for its robotic kiosks. The company has a strong leadership team with proven successes, reducing risk for potential investors. 

Blendid has plans to scale its business into more Walmart stores (it already has a partnership with the company), as well as supermarkets around the country. If it can continue to secure funding long enough to weather the storm of COVID-19, Blendid has much room to grow into a very successful business.

Executive Summary

Blendid has been rated a Deal to Watch because of its unique technological spin on the food industry, as well as its strong leadership team. Its existing partnerships with various California colleges, as well as Walmart, indicate good traction for the business.

Blendid faces challenges due to the ongoing pandemic, as well as a high spending rate of capital. The valuation is also quite high for a company that hasn’t shown much profitability to date, but the potential for growth is there.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

Analysis written by Ethan Thomas.

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Blendid on MicroVentures
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Platform: Microventures
Security Type: Convertible Note
Valuation: $50,000,000
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