US online grocer Misfits Market valued at over $1 billion

Recently, US online grocer Misfits Market announced that it has raised $200 million in a Series C financing round, which brings its total financing to $301.5 million and puts its valuation into unicorn territory (that is, more than $1 billion) .

Misfits Market, an online grocery platform founded in the United States in 2018 , is a startup known for selling "ugly " fruits and vegetables at discounted prices and has grown rapidly in the past two years .

Misfits Market rescues food that is normally unsaleable ( produce is too big, too small, or has other issues that make it inedible ) from farms, suppliers, and retailers and sells it directly to consumers, saving up to 40%. Its active customer base and order volume grew fivefold in 2020.

“In 2020, Misfits Market found itself at the epicenter of seismic global change – with food supply chains experiencing a once-in-a-century disruption and major institutions and households transforming the way they source and consume food,” said Abhi Ramesh, Founder and CEO of Misfits Market.

Misfits Market tripled its farmers and suppliers during 2020. The company delivered more than 77 million pounds of food in 2020 to more than 400,000 customers.  

How Misfits Market works: Refrigerated trucks are sent to farmers every week to pick up food that the farmers know grocery stores wouldn't accept, and the food is then brought to the Misfits Market warehouse for sorting. The company receives orders through its platform and partnerships with carriers and delivers the orders to customers overnight.

The revenue model works like this: The company charges a weekly subscription fee (as low as $22 per week for a small box and $34 for a large box), and customers also pay extra for the produce they decide to order.

The company ’s newest board member, Ryan Sweeney , said the direct-to-consumer model is not new in the food industry, but rather than focusing solely on their end customers, Misfits Market has managed to create a dynamic solution that supports food suppliers on every level.

Misfits Market 's product supply model and online sales method are both very valuable for reference, and its original intention of saving food is also well received.

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