Misfits Market operates an online grocery platform that sources organic produce, proteins, pantry staples, and other grocery items through a food value supply chain built with farmers, producers, and suppliers. The company markets value by rescuing surplus food and selling to customers at up to 40% off traditional grocery prices. It delivers to customers in 43 states and more than 26,000 zip codes. In the last four months Misfits Market has doubled its selection and recently launched proteins alongside a Dallas warehouse, delivering over 100,000 pounds of chicken, 48,000 pounds of steak, and 34,000 pounds of salmon in 10 weeks. The company says it aims to eradicate food deserts in America by 2025 and will use new capital to expand categories and deploy its supply chain nationwide. Founded in 2018 and headquartered in Greater Philadelphia, Misfits Market has raised roughly $526.5M and is valued at $2B following the new round. Misfits Market operates a direct-to-consumer discount grocery service that began with “ugly” fruits and vegetables and has since expanded into a variety of grocery categories. The company sources products that traditional retailers reject for cosmetic or other non-quality reasons to offer discounts of up to 40%. It runs its own fulfillment centers and internal technology stack, which leadership says helped it scale more quickly than many physical grocery competitors. Last year the company grew active customers and order volume 5x, shipping 77 million pounds of food to more than 400,000 customers. With the additional capital the company plans to continue expanding into new grocery categories and new geographies, taking first orders from Oregon and Washington and aiming to reach all ZIP codes in the lower 48 within 12 months. Misfits emphasizes value as its unifying product principle and cites operational advantages from owning fulfillment and logistics. Misfits Market began as a subscription box selling misshapen or 'ugly' produce at a discount that would otherwise go to waste. It has expanded its assortment to include chocolate, snacks, chips, coffee, herbs, grains, lentils, sauces and spices, which customers can add to their weekly boxes à la carte. Products are priced about 20–25% below retail, and the company sources items by capitalizing on structural inefficiencies in the food supply chain. Following the Series B, Misfits is scaling operations with a new warehouse in Delanco, New Jersey that will double capacity across the East Coast, the South and into the Midwest. The warehouse expands delivery into Arkansas, Mississippi and Louisiana, with plans to launch in Wisconsin, Minnesota, Iowa and Michigan soon. The company has hired 400 people since March and now has a total team of 750, with a 51% male / 49% female split; the executive team is 30% women and 20% racially diverse. Misfits Market operates a subscription box service that sells 'ugly' fruits and vegetables—produce with blemishes or odd shapes that often go unsold. The company sources produce straight from farms, eliminating additional shipping and shelf time that contribute to waste. It offers two box options: The Mischief (10–12 pounds) for $23.75 one-time or under $20 as a weekly subscription, and The Madness (18–20 pounds) for $42.50 one-time or $34 as a subscription. Users can pause or cancel weekly subscriptions at any time. Since launching in 2018, Misfits has sent out 5 million pounds of produce that would have otherwise gone to waste. The company currently serves all zip codes in Pennsylvania, New York, New Jersey, Connecticut, Delaware, Massachusetts, Vermont, New Hampshire, Rhode Island, Maine and Ohio, and plans to expand into Washington, D.C., Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida.

Total raised

$527M

Funding rounds

4

Latest round

Series C

Latest activity

Sep 2021