The move means it’s a unicorn, two times over.
This $225 million round — which the company is calling a C-1 raise — was led by SoftBank’s Vision Fund 2, with participation from repeat investor Accel. The raise puts Misfits Market at a $2 billion valuation, having raised $526.5 million so far, according to the company. As part of the round, Lydia Jett, an investor and partner at SoftBank Investment Advisers, will join Misfits Market’s board of directors.
It’s a story similar to that of another Philly-based unicorn, Gopuff, which has snagged repeat investments from both firms over the last few years. Accel came to Philly just before the pandemic last year to host an event with Philly Startup Leaders, and notably wooed a handful of local high-growth startups.
The 2018-founded Misfits Market saw an increased demand for its “ugly” produce and shelf-stable groceries like many other food delivery services amid the coronavirus pandemic, as consumers limited their trips to the grocery store. That’s partly why it was named Technical.ly’s RealLIST Startups list topper for 2021.
Earlier this year, CEO Ahbi Ramesh told Technical.ly that he’d been talking with Accel for “some time” with the intention to stay connected when the company was ready for its Series C.
“I think it’s important for any company to constantly be in touch with investors,” Ramesh said back in April. “It’s a lot easier for investors to write checks if they already know about your business and that you’ve been executing for a while.”
This C-1 round for Misfits Market will be used to fuel its nationwide expansion and increase the selection of items available to customers as it continues building its online grocery platform, according to Tuesday’s announcement. The company has doubled its selection of grocery items since its Series C round, and has recently started offering protein options such as chicken, steak and salmon. Misfits Market has also entered nine new states in 2021, and shipped groceries to more than 26,000 ZIP codes across 44 states and D.C.
The unicorn employed more than 1,000 people between its hubs in Pennsauken, New Jersey, and Utah as of April, and had plans then to double that headcount by the end of 2021. A spokesperson told Technical.ly on Tuesday that the company now employs around 1,000 people in the Philly area and is nearing 2,000 total. Check out its current open roles, including for software engineers.
“We believe Misfits Market has a deep understanding of the inefficiencies in the food supply chain and are building their own from the ground up to radically change the way food makes its way to the consumer,” Jett said in a statement about SoftBank’s investment. “I’ve been tremendously impressed by the focus and tenacity of Abhi and the Misfits Market team. We’re excited to partner with the company as they expand their product offering and fulfill their mission to provide everyone access to high-quality, affordable food.”-30-