Online food delivery company GrubMarket has raised $90 million in a round of funding. The financing was led by BlackRock, ACE & Company, Celtic House Venture Partners, Sixty Degree Capital, The Strand Partners, Reimagined Ventures, Trinity Capital Investment, Madison Bay Capital Partners, Marubeni Ventures and GGV.
Founded in 2014, the company was been on an acquisition tear lately. It recently acquired Bengard Marketing, which sells domestic and imported specialty fruits from growers in Chile, Argentina, Peru, New Zealand and the United States. GrubHub sells food to restaurants, grocery stores and corporate offices in Washington, Texas, New York, Massachusetts, California and Michigan.
“With this injection of capital, we will deepen our investment in people, technology and acquisitions to reach the next level of success,” ” said Mike Xu, CEO of GrubMarket, and added: “We will keep following the fundamentals of conducting a sustainable business and maintain profitability as the foundation of this company. Above all, the only and ultimate success criterion of my entrepreneurial pursuit is whether I can scale up GrubMarket to eventually achieve $100 billion of annual sales.”
The company’s business comprises commercial segment to grocery stores, meal-kit companies, and restaurants, direct-to-consumer segment and WholesaleWare, its vertical software business. GrubMarket’s customers include over 5,000 grocery stores, over 8,000 restaurants, and over 2,000 corporate offices. Whole Foods, Kroger, Albertson, Safeway, Sprouts Farmers Market, Raley’s Market, 99 Ranch Market are all among its customers. Its meal-kit and e-grocery customers include Blue Apron, Hello Fresh, Fresh Direct, Imperfect Foods, Misfit Market, Sun Basket and GoodEggs.
“Having a proven record of sustained hyper-growth and profitability, GrubMarket stands out as a rare Silicon Valley startup in the food technology and e-commerce segment,” said Jay Chen, managing partner of Celtic House Venture Partners. “GrubMarket’s creativity and capital efficiency is unmatched by anyone else in this space. Mike’s team has done an incredible job growing the company thoughtfully and sustainably. We are proud to be a partner in the company’s rapid nationwide expansion and excited by the strong momentum of WholesaleWare, their SaaS suite, which is the best we have seen in space.”