Upcycled grocery delivery Misfits Market raises $85m in Series B
The two-year-old start-up delivers upcycled produce and shelf-stable items to 26 states across the US for up to 40% less of the cost at local grocery stores
US-based grocery delivery Misfits Market, a budding start-up in the upcycled food movement, has closed an $85 million Series B funding round, bringing the total of funds raised to date to $101.5 million. The company raised $16.5 million in a Series A round last July.
The Series B round was led by Valor Equity Partners, with the participation of Greenoaks Capital, Third Kind Venture Capital, and Sound Ventures.
As part of the investment, Jonathan Shulkin, partner at Valor Equity Partners, will join the board of directors.
Founded by Abhi Ramesh in 2018, Misfits Market delivers certified organic and non-GMO produce, sourced from hand-picked farms and partners in the US and across the Americas to fight food waste – it claims to have rescued more than 40 million pounds of produce, mostly imperfectly shaped.
The start-up’s grocery delivery platform allows costumers to add shelf-stable items and ‘ugly’ produce onto a box for 25-40% less than what it would cost at a local grocery store.
The company uses 100% recycled cardboard boxes, and claims to be testing a few types of eco-friendly insulation that protect veggies in transit.
Misfits Market expansion
Misfits Market plans to use the fresh capital to scale its operations with the opening of a new, state-of-the-art warehouse in Delanco, New Jersey.
At the time of writing, there were 26 US states in the delivery list.
The expansion strategy includes building corporate and operations teams, growing customer base, and increase product and category offerings across its online grocery platform.
Ramesh revealed that after its Series A last year, the company saw subscription increase 18 times and that demand has increased 400% following the Covid-19 lockdown.