Spudsy makes puffed snacks out of sweet potatoes.

Spudsy, which ‘rescues’ imperfect sweet potatoes and transforms them into puffed snacks and fries, raised $3.3 million in a Series A funding round led by KarpReilly and Stage 1 Fund, bringing its cumulative funding to $6.5 million over two years. (Food Business News)

The startup plans to use the latest raise to develop its marketing, set up its direct-to-consumer business and to access new customers through innovative channels.

It also intends to introduce new product categories including frozen waffles, pizza crust, pasta and tortillas formulated with sweet potato flour.

Currently it sells its products online at spudsy.com and at retailers including Kroger, Whole Foods Market, Wegmans and H-E-B. Its puffed snacks are available in flavors including barbecue, vegan sour cream and onion, vegan ranch and cinnamon churro. Its sweet potato fries sell in hot, vegan ranch and sea salt flavors.

Ashley Rogers, CEO launched Spudsy three years ago. By the end of the year, the firm will likely have processed over a million imperfect sweet potatoes.

“It was really important to our team that we find partners that share the same vision, passion and goals as we do around making snacks that taste good and do good for the environment,” Ms. Rogers said. “KarpReilly and Stage 1 Fund really understand our mission and as a result of their vast network of industry experts we have been able to scale our brand at a more rapid pace.”

Related Story: Immi Lands $3.8M Seed Round For Plant-based Instant Ramen