Misfits Market, an online grocer that delivers organic produce, pantry staples and other grocery items at up to 40% off supermarket prices, has raised $200 million in a Series C funding round.
The funding round was led by Accel and D1 Capital, with participation by existing investors including Valor Equity Partners, Greenoaks Capital, Sound Ventures, and Third Kind Ventures. To date, the company has raised more than $301 million. As part of the funding deal, Accel's Ryan Sweeney will join the Board of Directors at Misfits Market.
The funding, which officially pushes Misfits into “unicorn” status with a company valuation of at least $1 billion, will help the company expand into every grocery category and distribute across more areas. The company’s goal is to end food deserts by 2025 by delivering fresh foods for an affordable price.
The funding underscores the explosive growth grocers experienced in 2020 as more consumers turned to online shopping for their groceries. Misfits was well positioned to become an essential service and fill in supply chain gaps that some retailers experienced as consumer demand for certain product categories skyrocketed.
Last year, Misfits tripled its farmer and supplier relationships to “rescue food,” as well as a 5x growth in active customers. The e-grocer shipped more than 77 million pounds of food to 400,000 customers in 2020. The rapid growth has continued into 2021, as well, with the company already surpassing what it shipped in 2020 during the first four months of 2021.
"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," Abhi Ramesh, founder and CEO of Misfits Market, said in a press release. "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."
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