GrubMarket raises $200m in Series E funding round, eyes IPO

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Photo Credit: GrubMarket (GrubMarket)

GrubMarket, a San Francisco-based food supply chain e-commerce company, has raised $200m in a Series E funding round, bringing its total valuation to over $1.2bn.

The "massively oversubscribed" funding round was led by 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, among other unnamed participants.

GrubMarket works with small farms and local artisans to sell and deliver their wares including fresh produce and a variety of other local products through the company's online marketplace where businesses, such as retailers and restaurants, and consumers can shop for locally-sourced products.

GrubMarket is transforming the trillion-dollar, highly-fragmented "old-school" food supply chain for business customers and end consumers by rolling out its modern software to the industry, claimed Griffin Schroeder, partner, Tiger Global Management.

"GrubMarket has already achieved an annual run rate of $1bn, with over 300% growth this year in e-commerce revenues and over 3500% growth in SaaS software sales, while maintaining strong net profitability. Moreover, GrubMarket is aiming to debut on the public market within the next 11 months or so," said Mike Xu, CEO of GrubMarket, who said that he aims to scale to over $100bn in annual revenues in combined e-commerce and software sales and offer both first-mile and last-mile digital solutions for the food supply chain industry in the US and globally.

GrubMarket currently operates in Arizona, California, Connecticut, Georgia, Michigan, New York, New Jersey, Missouri, Massachusetts, Oregon, Pennsylvania, Texas, Washington, and British Columbia (Canada).

 "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 US," added Xu.