Boxed Sets Sights on Costco After Rejecting $400 Million Kroger Bid
NEW YORK, NY - After rejecting a possible sale to Kroger that may have valued the company at $400 to $500 million, Boxed is making headlines again this month—and proving it may have been wise to wait and bet on a more lucrative future. The company announced $111 million in new funds for its online-only storefront this week, raised in a Series D funding round led by Aeon Ltd., one of Japan’s largest retailers.
After Walmart’s impressive quarterly buoyed grocery retailers large and small earlier this month, the online grocery provider was reported by the New York Times to now potentially be worth in excess of $600 million (though its valuation is private). And TechCrunch suggests that Boxed will be using its new funds to double down on a strategy that targets Costco’s consumers—“targeting families and other consumers who like to look for bargains by shopping for food and other groceries in bulk sizes.”
“Our industry is constantly evolving. Our latest fundraising efforts will allow us to capitalize on those changes. We’ll also continue to expand our national footprint by focusing on reaching our core consumer in various key markets, to increase national brand awareness of Boxed,” said Chieh Huang, Co-Founder and Chief Executive Officer, in a press release. “The autonomous vehicles our robotics team has created will help support our rapid growth, enabling us to meet customer demand through increased efficiency, and put us at the forefront of fulfillment center technology.”
According to that press release, the e-tailer is currently exploring future expansion of its operations around the country, including in the Chicago area, where execs have begun visiting potential new sites for a midwest-based facility. And Boxed plans to use its new capital to ramp up automation efforts spearheaded by the company’s in-house robotics team.
Will the online provider continue to expand and gain ground in Costco’s neighborhood? AndNowUKnow will continue to report.