USA – San Fransisco-based grocery delivery start-up, Imperfect Foods, has closed a US$72 million series C funding round to help finance the company’s expansion plans and mission to reach more customers with affordable and fresh groceries.
Imperfect Foods’ Series C financing round was led by Insight Partners and supported by existing investors of the company, including Series B lead Norwest Venture Partners.
The grocery delivery startup said that the funds will fuel continued expansion of the grocery delivery service across the United States, increase capacity in new and existing fulfillment centers and expand assortment.
The company also plans to enhance its technology to better connect producers, farmers and customers to the brand’s mission of eliminating food waste and building a better food system.
Imperfect Foods was launched in 2015 and has gained significant significant momentum in the business, expanding its operations in the food supply chain. The company now rescues and redistributes food across multiple grocery categories – including produce, shelf-stable goods, dairy, meat and seafood.
Over the past year, Imperfect Foods has seen impressive growth across key areas of the business. The start-up says that it has increased average order sizes two-fold year over year.
The company has also doubled its weekly order volumes since January, with more customers taking advantage of the convenient service and expanded product assortment.
Imperfect Foods’ performance and agility during the COVID-19 pandemic illustrates that its mission-driven model is poised for success in the long term. Tying back to its mission, Imperfect Foods is on track to save more than 200 million pounds of food from going to waste in 2020.
Commenting on the new capital infusion to fuel the company’s growth, Philip Behn, Imperfect’s CEO said that the company is energized by the continued support from investors to further its efforts on eliminating food waste and building a better food system for everyone.
“We’re illuminating vast vulnerabilities within our food supply chain and increasing access to fresh and affordable groceries. The partnership with Insight Partners comes at a unique moment – our model has not wavered in the time of COVID-19 and we’ve accelerated our roadmap as a result.
“This highlights how, even during times of unfathomable global hardship, we are an essential part of the safety net for hundreds of thousands of customers across the country.”
Following the investment, Adam Berger, Managing Director at Insight Partners will join the Board of Directors at Imperfect Foods.
Adam commented, “The grocery industry has been evolving for years, yet this particular moment highlights an urgent need to reinvent our food supply chain with innovative technology, and keep people safe.
“Imperfect Foods plays an integral role in this industry, merging a clear social mission with affordability and convenience. We’re excited to work closely with the team as they enter this monumental phase of growth, and push the industry towards a more intentional and efficient food system.”
Prior to this round, Imperfect Foods raised US$47 million from investors including Norwest Venture Partners, Maveron, Shasta Ventures, Flybridge, Corigin Ventures, and Kevin Durant. The new funds bring Imperfect Foods’ total raised to US$119 million.