Mercato is a platform-as-a-service that helps smaller grocers and specialty food stores go online quickly, offering an e-commerce storefront, white-label options, and a centralized product catalog of over one million items. Its solution includes a data analytics platform, integrations with more than 30 POS systems, and machine-learning-driven stock inference that maps roughly 95% of a store's products in minutes. Merchants can maintain the customer relationship by handling orders themselves while Mercato contracts with national and regional couriers for delivery. The company generates revenue from a consumer membership program (plans range from $96/year to $228/year) and from merchants via a single-digit percentage transaction fee. Mercato scaled to more than 1,000 merchants across 45 U.S. states, reported more than 1 million customers, and grew merchant sales 1,300% in 2020. Future plans include adding a supply platform, expanding its data analytics and consumer subscription benefits, and growing its remotely distributed team (now about 80 employees). Mercato builds an e-commerce platform that lets independent grocers offer online ordering, deliver within a 15-mile radius, and communicate directly with customers. The platform also provides merchants with analytics on products and pricing. Mercato reports a network of 750 independent grocers and plans to add more with the recent funding. The company intends to use the capital to expand into new markets, build out its sales and marketing team, and further develop its analytics. Founder and CEO Bobby Brannigan started Mercato in 2015 and relocated the company to downtown San Diego earlier this year, operating from coworking space Downtown Works. Brannigan previously founded ValoreBooks, which grew to $85 million in revenue before being sold to SimpleTuition. Mercato operates a mobile-focused e-commerce and marketing platform that enables independent and specialty grocers to sell locally sourced food to consumers. The platform offers marketing, e-commerce, and service tools for local butchers, seafood and produce markets, bakers, and small grocers to connect seamlessly with consumers. Since launching in 2015, Mercato has built networks of local retailers across seven U.S. markets and is operating in New York (Brooklyn, Manhattan & Queens), Chicago, San Francisco, Alameda, Washington, D.C., and Princeton, NJ. The company has been rapidly adding merchants—22 specialty and small grocery stores in April and 35 in the first week of June—and retailers report hundreds of transactions per week. A recent capital infusion from Michael Loeb’s private investment platform will be used to increase marketing and sales efforts and to expand Mercato’s roster of team members during this period of significant growth. Founder and CEO Bobby Brannigan created Mercato drawing on his experience in his family’s butcher shop and grocery store to bring independent grocers into the future. Mercato is an online marketplace for specialty food stores that helps merchants sell online and offers local and national delivery. The company positions itself as the only online marketplace focused on specialty grocers. CEO Bobby Brannigan says the idea was inspired by his family’s Italian grocery in Brooklyn, which his family has operated for over 40 years. Mercato’s business model is commission-based, earning a fee on each sale paid by the store. The startup raised a $1M seed round via a convertible note from several angel investors. The team raised capital before the product launched and said the fundraising process involved meetings with many angel and VC investors, including Richard Branson. Near-term plans include proving the concept in Brooklyn, integrating 50 merchants in NYC over the next six months, and expanding to additional territories thereafter.

Total raised

$31M

Funding rounds

4

Latest round

Series A

Latest activity

Apr 2021