Imperfect Foods has raised $72 million in a Series C funding round, to expand its salvage and grocery delivery operations for aesthetically imperfect produce.
Founded in 2015, the San Francisco-headquartered company aims to reduce food waste by ‘rescuing’ imperfect or excess products, including vegetables, dairy, shelf-stable goods, meat and seafood. These are then distributed to consumers via its grocery delivery service.
The company’s latest financing round, which brings Imperfect Foods’ total funds raised to $119 million, was led by Insight Partners. The round was also supported by existing investors, including Series B lead Norwest Venture Partners.
According to Imperfect Foods, the funds raised will be used to support the continued expansion of its delivery service across the US, increase the company’s fulfilment centre capacity and extend its product range. Additional capital will be used to enhance the technology which supports the brand’s mission of eliminating food waste.
The company says that it has experienced significant growth across key areas of its business over the past year, and that since January, weekly order volumes have doubled. Its service, Imperfect Foods claims, is on track to save more than 200 million pounds of food from going to waste this year.
“We’re energised by the continued support from investors as we eliminate food waste and build a better food system for everyone,” said CEO Philip Behn.
“The partnership with Insight Partners comes at a unique moment – our model has not wavered in the time of Covid-19 and we’ve accelerated our roadmap as a result. This highlights how, even during times of unfathomable global hardship, we are an essential part of the safety net for hundreds of thousands of customers across the country.”
Insight Partners managing director Adam Berger, who will be joining the board of directors at Imperfect Foods, added: “The grocery industry has been evolving for years, yet this particular moment highlights an urgent need to reinvent our food supply chain with innovative technology, and keep people safe.
“Imperfect Foods plays an integral role in this industry, merging a clear social mission with affordability and convenience. We’re excited to work closely with the team as they enter this monumental phase of growth, and push the industry towards a more intentional and efficient food system.”
Prior to this round, Imperfect Foods raised $47 million from investors including NBA star Kevin Durant, whose Thirty Five Ventures company backed the service.
© FoodBev Media Ltd 2020