San Francisco-based food technology company GrubMarket recently announced it has raised $200 million in what the company states was a massively oversubscribed Series E funding round. To date, this round brings GrubMarket value to over $1.2 billion.
“GrubMarket has already achieved an annual run rate of $1 billion, with over 300 percent growth this year in e-commerce revenues and over 3,500 percent growth in SaaS software sales, while maintaining strong net profitability,” commented Mike Xu, Chief Executive Officer of GrubMarket. “Moreover, GrubMarket is aiming to debut on the public market within the next 11 months or so. However, the only success criterion of my entrepreneurial pursuit remains whether I am able to eventually scale GrubMarket to achieve $100 billion in annual revenues (e-commerce and software sales combined), offering both first-mile and last-mile digital solutions for the food supply chain industry in not only the U.S. but also across the globe.”
The funding round consisted of Tiger Global Management, funds and accounts managed by BlackRock, Liberty Street Funds, Apeira Capital, Japan Post Capital, Celtic House Asia Partners, We Capital, and Walleye Capital. Several more participants contributed to this round but were unnamed in a company press release.
“GrubMarket is digitally transforming the trillion-dollar, highly fragmented, old-school food supply chain. They are executing a disciplined, profitable strategy and introducing modern software to the industry. We look forward to being a part of GrubMarket's journey to improve the efficiency and sustainability of the American food ecosystem,” said Griffin Schroeder, Partner, Tiger Global Management.
The success stemming from this funding round hardly comes as a surprise for us here at Deli Market News as we keep a close eye on the wholesaler. GrubMarket frequently pops up on our radar for either closing acquisitions in transportation, supplier companies, or new tech.
“Under Mike’s vision and exemplary leadership, GrubMarket is well on its way to transforming food distribution through vertical integration of the supply chain with best-in-class technology. We are inspired by both the company’s mission of creating sustainable, data-driven distribution to unlock value for a massive yet inefficient industry, as well as its impressively disciplined approach of driving aggressive but profitable scale to build a durable franchise,” added Natalie Hwang, Founder and Managing Partner of Apeira Capital Advisors. “GrubMarket represents an extraordinarily rare breed of company that Apeira Capital is privileged to partner with and to support in its next phase of rapid, nationwide expansion.”
Rapid growth and expansion indeed. According to the release, the wholesaler isn’t sitting on its laurels as it is currently eyeing another part of the country to invest in.
“In the next 2–10 years, GrubMarket will also play a critical role in reviving the food ecosystem in the Midwest and addressing the demographical inequalities surrounding access to fresh, healthy food, between the West Coast, East Coast, and central regions of the U.S.,” said Xu.
How far will GrubMarket go as it continues to build up in the retail landscape? Deli Market News will report.