With new funding, Door-to-Door Organics’ eyes expansion, larger HQ

LOUISVILLE – Door to Door Organics Inc. has raised a Series B funding round of more than $25 million that should help accelerate expansion into new markets and lead to an expanded or new headquarters sometime in the first half of next year.

New York-based food and agriculture investment firm Arlon Group led the round, which according to regulatory documents was just shy of $25.7 million. Boulder-based Greenmont Capital Partners, which invested in a $3.25 million Series A round in 2012, also participated in the Series B round.

Door to Door, a Louisville-based online natural and organic grocery retailer founded in 2005 by David Gersenson, operates in 11 markets and 30 cities, including Denver, Kansas City, Philadelphia and Chicago. The company sources 70 percent of its produce locally during the growing season.
The company employs 330 people, about a third of which are in Colorado at its Louisville headquarters and its Lafayette distribution warehouse. Chief executive Chad Arnold said Door to Door is expecting revenue of about $35 million this year, up from $26 million in 2013.

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The current employee count is up 84 percent over the past two years, and Arnold said the company will be adding a variety of new hires in operations in addition to bulking up its merchandising and technology teams.

That growth, Arnold said, has the company growing out of its current headquarters at 282 Century Place in Louisville, though he said the company would like to stay close by.

“We definitely think this is a great corridor for us being able to draw out of Boulder and Denver, and we have a lot of local employees here as well,” Arnold said. “We like this area.

Arlon Group principals Michelle Brooks and Alexander Bernstein will both join Door to Door’s board of directors.

“We’ve been studying the online grocery industry since 2010 and Door to Door Organics is one of the few companies in the industry that has a proven model for growth and a demonstrated record of profitability,” Brooks said in a statement. “As the market continues to expand we are confident that the company’s model will enable it to exceed our expectations for success.”