The Series B round for Witherspoon’s Draper James brand was led by San Francisco-based Forerunner Ventures.
Sales increased 42% to $6.0 million in third quarter.
Diet and meal-delivery service company eDiets.com Inc. posted higher revenue in the third quarter.
For the quarter ended September 30, eDiets, No. 395 in the Internet Retailer Top 500 Guide, reported:
- Sales increased about 42% to $6.01 million from $4.24 million in the third quarter of 2009.
- Net loss of $3.6 million, up 9% from $3.3 million.
- Digital plan revenue declined 24% to $912,000 from $1.2 million in the third quarter of 2009.
- Meal delivery sales rose 126% to $4.3 million from $1.9 million.
- Business-to-business revenue declined about 25% to $597,000 from $800,000 in the third quarter of 2009.
“Our focus on expanding our customer base and improving gross margins continues to be effective,” says Kevin McGrath, president and CEO. “We recently launched a number of initiatives designed to drive revenues in the fourth quarter and beyond, including marketing and partnering investments with NBC Universal Television Consumer Products Group, Reveille LLC for The Biggest Loser Meal Plan and ShopNBC for the eDiets Meal Plan. In addition, we produced and began airing new television commercials to increase awareness of our meal delivery service, and significantly reduced monthly expenses via a headcount reduction.”
For the first nine months of fiscal 2010, eDiets reported:
- Sales increased 16.2% to $16.5 million compared with $14.2 million for the same period in 2009.
- Net loss was $42.0 million compared with a net loss of $8.8 million. The net loss includes a $24 million non-cash charge for writing off debt related to converting secured notes into common stock that occurred in the second quarter.
- Digital diet plan revenue declined about 21% to $3.0 million from $3.8 million in the third quarter of 2009.
- Meal delivery sales rose 77% to $10.8 million from $6.1 million.
- Business-to-business revenue declined 39.4% to $2.0 million from $3.3 million.