The company founded by Abhi Ramesh has raised $200 million in a Series C funding round co-led by Accel and D1 Capital
Misfits Market has closed its Series C funding round totalling $200 million. The oversubscribed round valued the company over $1 billion and brings the US company’s total funding to $301.5 million to date. Accel and D1 Capital co-led the round with participation by existing investors including Valor Equity Partners, Greenoaks Capital, Sound Ventures, and Third Kind Ventures.
In tandem with its Series C funding, Accel’s Ryan Sweeney will join Misfits Market’s board of directors.
Chief executive Abhi Ramesh founded Misfits Market in 2018 to tackle food waste in the US. Today it delivers upcycled produce and shelf-stable items to 26 states for up to 40% less of the cost at local grocery stores.
The funding unlocks its ability to expand into every major grocery category and distribute across every underserved area nationwide to push forward its goal of eliminating food deserts in the US by 2025.
The Covid-19 pandemic caused a state of shock for the entire food supply chain, from sourcing and procurement to distribution and consumer experience, which led to a momentous shift across the industry.
Rising to the challenge for consumers, farmers and CPG brands, Misfits Market tripled its farmer and supplier relationships to rescue food, preventing waste as well as significant losses for farmers and producers.
Ramesh said: “With this capital infusion, we plan to complete our expansion to the west coast and continue to expand the selection of organic produce and high-quality, sustainably-sourced proteins and pantry items, getting us one step closer to our mission of making sustainable and affordable food accessible to every community across America.”
The company reported 5x growth in its active customers and order volume last year, shipping more than 77 million pounds of food to over 400,000 customers across the US.
In the first four months of 2021, Misfits Market has rescued the same amount of food as it saved last year.
As 68% of grocery shoppers who turned to the safety and convenience of online services during the pandemic plan to continue shopping online, Misfits Market prepares for ongoing customer acquisition and retention while promoting less hassle and more discovery throughout the shopping process.
“Direct-to-consumer models aren’t anything new in the food industry, but the approach Misfits Market has taken is,” said Ryan Sweeney, partner at Accel and Misfits Market’s newest board member. “Instead of focusing only on their end customer, they’ve managed to create a dynamic solution that also supports food suppliers at every level.”
Since Misfits Market’s $85 million Series B funding announcement in July 2020, the company has expanded its footprint and is launching new offerings, including grocer category expansion, increased delivery capacity, and geography expansion.
Date published: 21 April 2021