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Oath Oats

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Security Type
Common Stock
Food & Bev
Min Investment
Offering Date
September 06, 2023
Expected Close Date
December 05, 2023
Target Raise
No. Investors
Security Price
Number of Employees
Short Term Debt
Cost of Goods
Long Term Debt
Net Income

Company Description

Oath Oats is a food brand dedicated to one of nature’s most powerful ingredients, oats! For now, Oath Inc. makes overnight oats, granola, and oat bars based on its founder, Feel Good Foodie’s online recipes. All of its products are gluten-free and contain 0g of refined sugar. The brand is founded by Yumna Jawad, an Instagram influencer with 50M+ followers.

Oath Oats is dedicated to producing healthy and delicious oat-based food products. It is majority-owned by Midas Brands, a venture studio with consumer packaged goods ("CPG") experts and a track record of scaling food brands. Midas Brands dedicates resources, funding, and expertise to support Oath Oats as the business grows. Other than centralized functions (accounting, project management, and procurement), Oath Oats operates independently from Midas Brands. The company generates revenue from the sale of food products online from its website. It currently has over 10 SKU’s which it intends to sell through other online channels (eg. Amazon) and wholesale grocery stores. The products are priced between $11-$29. 

The oat-based snack market in the U.S. alone is currently worth over $19B and is expected to grow to $27.5B by 2028. The US oat milk market is expected to grow from $173.8M in 2019 to $630.8M by 2028. This growth is attributed to rising consumer trends around veganism and the population becoming more health-conscious. The company is in a very competitive and highly fragmented market. Its competitors include Quaker Oats, Bob's Red Mill, Nature's Path, Purely Elizabeth, and Oats Overnight. Being an organic, sugar-free, and healthy option is the USP. 

The company is in the final stages of R&D on a new overnight oats product line which it believes will be one-of-a-kind in the market today. Unique selling points of the product would include enhanced nutritional benefits like protein, probiotics, and omega-3 in a single serving. 

Oath Oats’ existing revenue is based on a limited time in the market - the brand was soft-launched in December 2022. Since then it has received over 1000 orders through its online store and over $50,000 in revenue. It has also refined the customer acquisition model which is essentially free through its co-founder celebrity. With a 35% return customer rate, millions of unpaid impressions across social media platforms, and a rapidly growing Instagram following of over 200K, the brand is getting noticed. Since the brand is launched by a food influencer it has the added advantage of a pre-existing influencer base and brand trust. To expand on its distribution, it is currently in discussion with a national retailer to carry Oath Oats products across the U.S.The company also plans to launch its best-selling products on Amazon in the U.S. and Canada within the next 3 months, especially in Canada where it has seen significant market interest, with about 8% of organic website traffic coming from Canada. The revenue for 2023 Q1 stood at $49k with a 50% gross margin and a net loss of 384k.

Use of Proceeds

The company plans to use the funds for marketing, expansion to the Canadian market, launching best-selling products on Amazon, staffing, inventory, new product development, working capital, and platform fees.

Management Team / Advisory Board Bios

The company has a good management team.

Anuraj Naithani, CEO
Anuraj brings over 8 years of experience as a strategy consultant advising CPG and Technology companies across the world. He has a background as a food start-up founder and has previously been involved in all aspects of scaling a CPG company including operations, digital marketing, and wholesale. As the CEO of Oath Oats, Anuraj is responsible for developing and executing a growth strategy for the brand which includes leading a team of specialized employees and partners toward a common mission. He currently works full-time at Oath Oats. 

Yumna Jawad, Founder & Board Member
Yumna is a content creation expert, her viral oat-based recipes are the foundation of Oath Oats products. She has built a loyal social following consisting of millions of people for over 10 years. Her community spans multiple online channels and continues to grow rapidly. Yumna’s delicious oat-based recipes, expertise in digital marketing, and network of influencers are essential in scaling Oath Oats through the growth phase. Yumna works about 10 hours per week at Oath Oats.

Heather Scholten, Chief Operating Officer
Heather managed operations at Spiceology for 8 years, the company she co-founded with Pete in 2013. With more than 20 years of experience with multiple Fortune 500 companies, Heather is most at home in fast-paced startup environments. Heather brings entrepreneurial drive and a diverse skill set outside of her extensive operations background including marketing, graphic design, IT, and web design. Heather works about 30 hours per week at Oath Oats.

Peter Taylor, Chief Marketing Officer & Board Member
Pete is a 5x founder, brand executive, advisor, and investor. Prior to launching Oath Oats, Pete founded Spiceology, Inc., which has made the Inc. 5000 Fastest-Growing Private Companies list for the last 5 years in a row. Pete’s rich experience in brand architecture, strategic partnerships, and omni-channel sales serve him well in his role as Chief Marketing Officer for Oath Oats. Pete spends 20 hours a week on Oath.

Scott de Rozic, Board Member
Scott brings over 20 years of experience building startups as a founder and C-level executive. He’s raised substantial capital and founded and built companies to exit. As a board member, Scott brings deep experience in technology, finance, governance, and strategy to Oath Oats. Scott works about 10 hours per week at Oath Oats.

Valuation Notes

Currently, the company has valued itself at $7.53M pre-money. It looks reasonable since the product has good traction and a high expected growth trajectory. The company plans to start raising a subsequent round of financing within 6 months of closing the Crowdfund.

Amount Raised : $148,200
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Security Description

Common stock is a security that represents ownership in a corporation.

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