Misfits Market, the e-commerce platform that sells “ugly” produce(among other things ), has today announced the close of an$85 million Series B funding round. The funding was led by Valor Equity Partners, with participation from Greenoaks Capital, Third Kind Equity Capital and Noise Ventures.
Misfits Market started as a subscription box that permitted folks to buy misshapen or awful produce on the inexpensive weekly. This fruit and vegetables would have been tossed out at the farm, before ever heading to a distributor or supermarket, due to the fact that it generally goes to lose resting on a supermarket rack.
There’s nothing in fact wrong with this fruit and vegetables, other than for the truth that shoppers wouldn’t normally pick it from a stack of fruit or veggies that look more pleasing.
Considering that raising its Series A, Misfits Market has actually been working to expand its selection, which now consists of chocolate, snacks, chips, coffee, herbs, grains, spices, lentils and sauces. Users can add these items to their usual weekly produce box on an à la carte basis, and they’re priced 20-25% listed below retail. These products are available to “add to box” once a week (on Thursdays).
At its core, Misfits Market looks at any structural inefficiencies in the food supply chain and capitalizes on them, getting the product at a discount and passing those cost savings on to the consumer. These ineffectiveness may include problems with sell-by date– some items need to be on store shelves nine months before their sell by date– or a futile mistake (like the olive oil company that works with Misfits Market and has a bad practice of connecting its labels upside down on the cans).
Where timing is concerned, Misifts Market does not have to play by the same rules as a supplier or supermarket, as it sends products directly to customers, taking advantage of a much faster logistical operation.
Alongside the financing statement, Misfits Market is also announcing a new warehouse in Delanco, New Jersey that will allow the start-up to double its capability across the East Coast, the South and into the Midwest. This broadens Misfits Market’s shipment footprint to Arkansas, Mississippi and Louisiana, and the company has strategies to release in Wisconsin, Minnesota, Iowa and Michigan soon.