Online grocer Misfits Market has secured $200 million in Series C funding, which will support its mission to eliminate food deserts in America by 2025.
The start-up claims to deliver fresh organic produce direct-to-consumers, which is discounted up to 40% compared to grocery store prices. It aims to make affordable, quality food more accessible and leverages direct relationships with grocers and producers to reduce food waste at scale and eliminate inefficiencies in the food system.
Misfits Market says the funding unlocks its ability to expand into every major grocery category – adding quality meats, poultry and seafood to its fruit and vegetable portfolio – and distribute across every underserved area nationwide.
The oversubscribed Series C round – which brings Misfits Market’s total funding to date to $301.5 million – was co-led by Accel and D1 Capital, with participation by existing investors including Valor Equity Partners, Greenoaks Capital, Sound Ventures and Third Kind Ventures.
With the funding round, the start-up says it has officially surpassed ‘unicorn’ status – with a valuation over $1 billion.
“In 2020, Misfits Market found itself in the middle of a global sea change – the food supply chain experienced a once-in-a-100-year disruption, with major institutions and households changing the way they source and consume food,” said Abhi Ramesh, founder and CEO of Misfits Market.
“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.”
Last year, the company saw five times growth in its active customers and order volume, shipping more than 77 million pounds of food to over 400,000 customers across the US.
Ryan Sweeney, partner at Accel and Misfits Market’s newest board member, said: “Direct-to-consumer models aren’t anything new in the food industry, but the approach Misfits Market has taken is. Instead of focusing only on their end customer, they’ve managed to create a dynamic solution that also supports food suppliers at every level.”
© FoodBev Media Ltd 2023