U.S. President Trump’s extensive tariff hike has led to Cut growth forecasts In other uncertain– will inevitably affect the actions of the technical sector. Today, however, Grubmarket, a food e-commerce startup called Grubmarket, announced a new stock round of $50 million, valued at over $3.5 billion, suggesting that some people have no plans to slow down their plans.
Liberty Street Funds, 3 Spoke Capital, Pinegrove Capital Partners, Roc Venture Group, Portfolia, Pegasus Tech Ventures and Joseph Stone Capital invested in Series A G in the round, among other unnamed supporters.
In the food distribution market estimated to be worth about $1 trillion per year, the company’s valuation has been growing rapidly behind its growing balance sheet.
The last round we cover is E’s series E 2021When Grubmarket raised $120 million at a valuation of $1.2 billion; a year later, per toneit raised $120 million in the F series at a valuation of $2 billion. (Note: I have confirmed in the company that the G-series detailed in PitchBook is incorrect.) Other investors in the company include Tiger Global, Y Combinator, Battery Ventures, and more (it has over 100 names on the PitchBook.)
The latest round of Grubmarket is worth more than $3.5 billion.
Grubmarket itself is a huge food distribution business, but in this case of a stock fund raise, the money will be used to build more technology to improve how customers manage their business, and with you guessed it – with special emphasis on AI to help customers who have to process large amounts of data through multiple offline formats including voicemail and posting stamps.
We understand that Grubmarket is on track now and will earn $2.4 billion in revenue this year ($2 billion in 2024), CEO and founder Mike Xu said in an interview that it is profitable on EBITDA. So, as the world of food e-commerce is integrated, GrubMarket will use some of its cash and more cash to make more acquisitions, including startups and more legacy businesses.
“As Grubmarket grows, we have the opportunity to handle larger acquisitions,” he said. “The industry always has wholesale and distributors of all sizes and when owners get older or want to embrace new technology, they need to exit, so they make changes.”
Of course, food is a basic necessity, but in wealthy countries such as the United States, commercialization has been greatly improved through channels such as social media and television, which is also a pastime and a major fixation.
Companies that can be associated with supply and strong unit economics can kill people.
Grubmarket initially Healthy food procurement and distribution startadopt a technology-first approach to working with different farmers and other producer groups and handing over their goods to buyers, mainly small retailers and some giants, such as Whole Foods.
Over time, it further strengthened the food distribution business – See Collide In trade, especially in Peak of 19 years – Causes its revenue and valuation to become higher and higher. Recently, it has begun to unearth many other food distribution startups that it sometimes encounters Good eggs Deliver their personal information directly to the consumer.
(And its cost cuts and consolidation also seems to work: the good egg is at the end of the runway, and when Grubmarket buys it, all options are exhausted; now, it is profitable, Xu tells TechCrunch.)
Now, Grubmarket has about 12,000 employees and also spreads its technology and business model to more countries. Now, in addition to active activities throughout the United States, it is also present in Argentina, Canada, Chile, Colombia, Egypt, India, Mexico, South Africa and Spain, and plans to develop further. It said its procurement and distribution network covers a total of about 70 countries.
Xu is very optimistic so far, or at least comment on the impact of Trump’s tariffs on his business and the wider global food distribution network. The form of higher prices has obvious impact, possible supplier collapses and demand declines – but very little effect So far He said this directly affects the products and other foods traded on the cereal market by logistics and tariffs, and the company’s business is currently operating as usual.
Meanwhile, Xu is focusing on AI and other technologies, which he believes will be the cornerstone of any version of his industry in the 21st century – size, trend or struggle.
He said last year, Grubmarket released “really comprehensive” enterprise AI software for the food supply chain industry. It includes components that provide business intelligence, AI analysts, to help their customers plan and manage their cash flow, while the third is essentially an ordering assistant.
These really involve how the food supply industry crosses different ways of attack. Producers, wholesalers, other distributors and logistics companies all sit on a lot of data, but a large portion of it still comes from unstructured and very offline modes: voicemail messages, paper crumbs, paper paper, text messages across many platforms. The purpose of the AI assistant is to read the common format used to include it throughout the rest of the system. Xu said many components are patented or filed, emphasizing the severity in the business.
Xu will not be raised in the next step and whether it is included in the public list. Today, the market seems to be open anyway, just as many startups of size stay private and relax and incorporate quasi-private equity arrangements or buy back their shares as they see their list in an IPO.
“Grubmarket has rapidly grown into a major food technology company by leveraging best-in-class AI-driven software solutions and strong operational discipline, backed by an established business foundation and commitment to sustainability that benefits farmers across California and across the United States.” “With continued innovation in AI enterprise solutions, vertical SaaS operational software, and its e-commerce platform and ecosystem, Grubmarket has become a pioneer in transforming the trillion-dollar U.S. food supply chain industry.”
