GrubMarket Raises $90 Million in 2020 to Accelerate Nationwide Expansion
SAN FRANCISCO, CA - With its growth on the rise and expansion in its sights, GrubMarket is one step closer to moving its services to more areas across the U.S. as it has announced it has completed $90 million in an oversubscribed Series D financing round in 2020. The California-based startup turned household name secured the financing from accounts managed by the likes of BlackRock, ACE & Company, Celtic House Venture Partners, Sixty Degree Capital, and more.
"I want to thank all of our supporters. Series D round was many times oversubscribed as we originally intended to raise no more than $30 million. We have made quite some efforts to keep this round under $100 million. Such oversubscription continues to happen in the current pre-IPO round," said Mike Xu, CEO of GrubMarket. "Delivering ultra-high growth and profitability remain the priority in all of our geographies. With this injection of capital, we will deepen our investment in people, technology, and acquisitions to reach the next level of success. Our objective is to grow our ARR by $200 million in the first quarter of 2021 and expand to most of the regions of the country to reach $1 billion of ARR within the next 12 months. Moreover, we will keep following the fundamentals of conducting a sustainable business and maintain profitability as the foundation of this company. Above all, the only and ultimate success criterion of my entrepreneurial pursuit is whether I can scale up GrubMarket to eventually achieve $100 billion of annual sales."
This key $90 million investment comes following a series of major accomplishments from GrubMarket, including the expansion of its services into four new states in 2020, including Washington, Texas, Massachusetts, and New York. According to a release from the company, it now operates in over 30 warehouses across California, Washington, Texas, Massachusetts, New York, and Michigan and has plans to grow into other major markets across the country.
The company's business is comprised of commercial segments to grocery stores, meal-kit companies, and restaurants, as well as direct-to-consumer segments and WholesaleWare. Additionally, its vertical software business has seen significant growth in recent months, growing over 1,000 percent and managing hundreds of millions of dollars of food wholesale activities annually.
"Having a proven record of sustained hyper-growth and profitability, GrubMarket stands out as a rare Silicon Valley startup in the food technology and ecommerce segment," said Jay Chen, Managing Partner of Celtic House Venture Partners. "GrubMarket's creativity and capital efficiency is unmatched by anyone else in this space. Mike's team has done an incredible job growing the company thoughtfully and sustainably. We are proud to be a partner in the company's rapid nationwide expansion and excited by the strong momentum of WholesaleWare, their SaaS suite, which is the best we have seen in space."
GrubMarket’s start came as a way to evolve the B2B food supply chain by establishing a producer-centric platform. The service is able to offer its market participants price advantages and has created exclusive producer and customer relationships, as well as retention rates of over 95 percent. Its B2B customers include over 5,000 grocery stores, more than 8,000 restaurants, and over 2,000 corporate offices.
How will this new funding enable GrubMarket to continue expanding its platform? Keep a tab open for AndNowUKnow as we bring you the answers.