USA – Farm-to-table food delivery service GrubMarket is bound for further growth following a successful series E funding round where it raised US$200 million.
The oversubscribed Series E round was led by Tiger Global Management and participated in by a number of investors including BlackRock, Liberty Street Funds, Apeira Capital, and Japan Post Capital, among others.
This recent round values the Fransisco, California-based food technology company at over US$1.2 billion.
GrubMarket supplies local fresh food online with affordable prices and convenient delivery and manages relationships between food suppliers and customers.
GrubMarket has already achieved an annual run rate of US$1 billion, with over 300% growth this year in e-commerce revenues, according to Mike Xu, CEO of GrubMarket.
According to Xu, GrubMarket will 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.
This announcement comes after the company announced it raised $90 million in a Series D financing round last year.
With the successful series E funding round, GrubMarket is now eyeing a debut on the public market which Xu estimates will happen within the next 11 months or so.
According to a Bloomberg report, Grubmarket is in talks with Goldman Sachs Group Inc., Morgan Stanley, and JPMorgan Chase & Co. about a U.S. listing during the second half of next year that could value it at $4 billion or more.
Oakport becomes part of GrubMarket
Meanwhile, GrubMarket has completed the acquisition of Oakport Transportation, a provider of comprehensive trucking and logistics services.
Oakport stores and ships produce throughout California, the Pacific Northwest, British Columbia, and Nevada, plus selected routes throughout the rest of the U.S. for certain seasonal items.
After the acquisition, the business will continue to be managed by its current leadership team, GrubMarket said.
“We are excited to join the GrubMarket team and welcome the opportunities brought forth by GrubMarket’s robust technology platform and network,” said Sal Rizzo, CEO of Oakport Transportation.
“We are constantly striving to be the most dependable trucking and logistics partner for our customers, and we look forward to bringing more efficient, reliable, and cost-effective logistics services to GrubMarket’s suppliers and end customers.”
GrubMarket plans to leverage Oakport’s facilities and logistics networks to address the supply chain challenges introduced by recent trucking shortages, route congestion, and skyrocketing consumer demand for fresh food.
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