David Secures $75 Million in Series A Funding for Innovative Protein Bars

David, a new protein bar brand founded by RXBAR’s Peter Rahal, has successfully raised $75 million in a Series A funding round. The majority of this capital will facilitate the acquisition of Epogee, a food technology startup specializing in a plant-based oil known as EPG, which mimics the characteristics of fat while boasting significantly lower calorie content.

This funding round, led by Greenoaks and supported by Valor Equity Partners, elevates David’s post-money valuation to $725 million. Rahal anticipates revenues of about $140 million within the first year of operations, making David one of the fastest-growing food brands in history.

Understanding EPG: A Revolutionary Ingredient

EPG, or esterified propoxylated glycerol, is produced by Epogee through a unique process involving the splitting of plant-based oils such as canola. The resulting glycerin and fatty acids are then recombined using a food-grade link. This method allows EPG to resist digestion by lipase, an enzyme that typically breaks down fats in the body, allowing it to contain only 0.7 calories per gram, compared to the 9 calories in traditional fats.

This low-calorie profile aligns perfectly with David’s goal to minimize the energy contributed by fats and carbohydrates in its protein-rich bars. Unlike other fat substitutes, EPG closely mimics the functionality of fat both commercially and biologically, making it an essential component for David.

“David accounts for about 90% of Epogee’s revenue. Therefore, securing a reliable supply of EPG is crucial for our growth,” Rahal explained. The acquisition will position David to better control its supply chain, ensuring that the demand for EPG can be met as the brand scales.

Challenging the Notion of ‘Ultra-Processed’ Foods

While the trend toward protein-rich diets grows, David maintains a commitment to formulating products where 75% of calories are derived from protein. This focus may necessitate the usage of some ingredients that don’t fit traditional wholesome criteria.

“Our products provide an opportunity to consume protein without excessive calories or sugar spikes,” Rahal stated, emphasizing the brand’s value as a tool for consumers, particularly those engaged with GLP-1 medications who are concerned about maintaining muscle mass.

The Viral Power of TikTok

Starting as a direct-to-consumer brand, David has grown its presence to Amazon and is now venturing into physical retail locations. Rahal recognizes the challenge of modern marketing but sees platforms like TikTok as a means for brands to reach expansive audiences.

“In the past, media exposure revolved around TV and print. Today, social media dominates; we gift our products, and consumers naturally share their experiences,” he explained. With appealing packaging and a high protein content, David has all the right ingredients for virality.

Moving forward, David plans to continue innovating within its core bar category, focusing on building out inventory, enhancing supply chains, and expanding its team.