Total amount raised
$526.5 Millions
Latest funding date
4/1/2023
Location
Misfits Market has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The company offers a subscription-based service that delivers fresh, organic produce and other groceries, aiming to reduce food waste and provide affordable, quality food.
Keep reading to explore the intricacies of Misfits Market's fundraising journey and the investors backing this innovative platform.
What Is Misfits Market?
Misfits Market, founded in 2018 by Abhi Ramesh and Edward Lando, is based in Clackamas, Oregon. The company aims to reduce food waste by offering subscription boxes filled with fresh, organic produce and other grocery items that farms and stores can't sell.
With a workforce of 1001-5000 employees, Misfits Market delivers these groceries directly to customers' doors at up to 40% off grocery store prices. Their service includes sustainably sourced pantry staples and other essentials.
By focusing on rescuing food that would otherwise go to waste, Misfits Market contributes to a more efficient and sustainable food system.
How Much Funding Has Misfits Market Raised?
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: October 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the business and develop the initial product offering.
- Series A
- Amount Raised: $16.5M
- Date: June 2019
- Lead Investors: Greenoaks
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and increase market reach.
- Series B
- Amount Raised: $85M
- Date: July 2020
- Lead Investors: Valor Equity Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth during the pandemic and scale operations.
- Series C
- Amount Raised: $200M
- Date: April 2021
- Lead Investors: Accel, D1 Capital Partners
- Valuation at Round: $1.1 billion
- Motivation Behind the Round: To expand product offerings, increase delivery capacity, and create jobs.
- Series C (Second Round)
- Amount Raised: $225M
- Date: September 2021
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand into new grocery categories and geographies.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: April 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling operations and enhancing technology infrastructure.
Total Amount Raised: $526.5M. Current Valuation: $1.1 billion.
Key Investors
- Accel
- Details: Accel is a global venture capital firm that invests in companies from their early stages through growth. Ryan Sweeney from Accel joined Misfits Market's Board of Directors.
- Investment Focus Areas: Technology, internet, software companies.
- Notable Investments: Facebook, Dropbox, Slack, Spotify.
- D1 Capital Partners
- Details: D1 Capital Partners is an investment firm that deploys capital in both public and private markets. They co-led the Series C funding round for Misfits Market.
- Investment Focus Areas: Public and private markets across various sectors.
- Notable Investments: SpaceX, Stripe, Instacart.
- Valor Equity Partners
- Details: Valor Equity Partners is a private equity firm that invests in high-growth companies across various sectors. They participated in the Series C funding round for Misfits Market.
- Investment Focus Areas: Technology, consumer, industrial sectors.
- Notable Investments: Tesla, SpaceX, GoPuff.
- Greenoaks Capital
- Details: Greenoaks Capital is a global investment firm that focuses on technology companies. They participated in the Series C funding round for Misfits Market.
- Investment Focus Areas: Technology companies, particularly those with a global reach.
- Notable Investments: Coupang, Robinhood, Discord.
- Sound Ventures
- Details: Sound Ventures is a venture capital firm co-founded by Ashton Kutcher and Guy Oseary, focusing on early to growth-stage investments. They participated in the Series C funding round for Misfits Market.
- Investment Focus Areas: Early to growth-stage technology companies.
- Notable Investments: Airbnb, Uber, Bird.
What's Next for Misfits Market?
Misfits Market is poised to seize substantial opportunities by expanding into new grocery categories and increasing its geographic reach. With plans to serve 100% of ZIP codes in the lower 48 states, the company aims to leverage its unique business model to support food suppliers and offer value to consumers. The potential to ship to every underserved area nationwide underscores the vast market opportunity ahead.
Future fundraising appears promising, given the successful Series C round and the involvement of high-profile investors. Additional rounds of venture capital funding or even an initial public offering (IPO) could be on the horizon as Misfits Market continues to scale its operations and enhance its technology infrastructure.
However, challenges such as scaling fulfillment centers, managing logistics, and competing with other grocery delivery services could pose hurdles. Maintaining sustainability and reducing food waste at a larger scale will also be critical as the company grows. Despite these challenges, the increasing consumer demand for sustainable and waste-reducing food options positions Misfits Market well for continued success.
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