GrocerKey Raises Funds to Enhance Digital Capabilities
The e-commerce platform GrocerKey Inc. has secured $2.4 million from 18 private investors in a recent equity round, bringing its total funds raised from investors to $9.5 million.
GrocerKey combines white-label e-commerce technology, its e-commerce grocery operating experience, and proven strategies to help brick-and-mortar grocery retailers build a profitable e-commerce business.
The company said that the proceeds from its latest financing round will be used for continued enhancements to its platform and added strategic support to help independent and regional grocery chains throughout the United States and Canada expand their digital capabilities in an era still affected by COVID-19.
“As we continue to live life in a global pandemic, grocery retailers are looking for ways to retain customers and compete in an industry disrupted by rapidly changing shopping habits,” explained Jeremy Neren, CEO for Madison, Wisconsin-based GrocerKey, adding that the company “is uniquely positioned to help brick-and-mortar grocery retailers not only build and scale e-commerce profitably, but also to pivot in an uncertain landscape to meet shifting demands.”
The pandemic and rapid adoption of online grocery shopping helped propel the success of GrocerKey’s e-commerce platform in 2020. Thanks to an unprecedented pipeline of grocers in need of expanding their digital capabilities, the company experienced an 85% increase in sales for its second quarter when compared with the same period in 2019.
In June 2020, GroceryKey also teamed up with SPINS, a wellness-focused market analytics, product intelligence data and technology solutions provider. According to Chicago-based SPINS, the partnership aimed to use digital tools and analytics to improve personalized shopping experiences for consumers.
Since launching in 2014, GrocerKey has grown more than 1,455% and is poised to surpass the $12 million in revenue it generated last year. Investors in the startup include independent grocer Woodman’s Markets, as well as dunnhumby Ventures and gener8tor.
“As we head into the new year, we remain focused on building out our platform to help our grocery partners increase basket sizes, fulfill curbside pickup and home deliveries, and improve the customer experience to collectively shape the industry’s future,” Neren added. “We’re grateful to our investors for seeing our vision and for supporting our company’s future growth.”
Woodman’s operates 18 independent, employee-owned grocery stores in Wisconsin and Illinois. The Janesville, Wisconsin-based grocer is No. 84 on The PG 100, Progressive Grocer's list of the top food and consumables retailers in North America.