Thrive Market operates a membership-based online marketplace that offers organic and natural grocery products at claimed discounts of 25–50% below retail. The service charges a $60 annual membership fee that enables lower pricing and has driven adoption in regions where affordable organic food is less accessible, notably the Midwest and Southeast. Co-CEOs Nick Green and Gunnar Lovelace say the company is expanding beyond retail into digital content such as recipes and healthy-living videos, aiming to become an all-encompassing lifestyle brand. Thrive has also been active in efforts to enable food-stamp purchases online. The business recently raised significant outside capital and says it is focused on growing the business rather than rushing to an IPO. Management has indicated they are open to going public someday but are equally comfortable remaining a profitable private company. Thrive Market is a membership-based online grocery selling natural and organic products, including private-label items. The company launched a dedicated Android app to let users shop from their phones, after previously releasing iOS (which saw over 50,000 installs in its first month and a five-star iTunes rating from 200+ reviews). Members pay $60 per year for access to wholesale prices, and the company reports more than 200,000 paying members. Thrive Market hit a $100 million run-rate early in its second year and recorded nearly $10 million in sales in the most recent month, though it is not yet profitable. The business has grown from 14 employees in November 2014 to nearly 400 and operates two fulfillment centers in Commerce, CA and Batesville, IN, enabling two-day shipping to over 85% of the U.S. Revenue comes from membership fees and private-label product sales. Through its "Thrive Gives" program the company donates one free membership to a low-income family for every paid membership sold; 51% of Thrive Gives families are Android users. Thrive Market is an L.A.-based online membership marketplace that sells curated natural and organic products to health-conscious consumers. Members pay $60/year ($5/month) for access to bulk-priced groceries and household items across food, baby, home, cleaning, and bath categories. Thrive buys products in bulk at wholesale prices and passes savings to members, generating revenue primarily through membership fees which cover operations and fulfillment. The company curates a limited set of best-in-class brands to simplify purchasing and offers educational content to help members learn about healthy living. To expand reach and improve logistics it plans a 275,000 square-foot fulfillment center in Indiana in addition to its existing 40,000 square-foot West Coast center. It has grown to 1 million registered users, more than 100k active members, a 75% trial-to-paid conversion, and is tracking to a $100M revenue run rate in its first year. Thrive also runs social programs, partnering with non-profits to give a free membership to families in need for every paid membership and will add an authentication system to verify students, military families, teachers, and other low-income demographics.

Total raised

$141M

Funding rounds

3

Latest round

Equity

Latest activity

Aug 2016