Misfits Market to acquire Imperfect Foods
Philadelphia-based online grocery platform Misfits Market has announced the acquisition of online grocer Imperfect Foods.
It says the planned acquisition will unite both brands to deliver a better, more sustainable grocery experience and put the combined business on track to cross $1 billion in sales and reach profitability by early 2024.
Founded to build a better food system and fight food waste, Imperfect Foods brings complementary and sustainably designed delivery networks to the Misfits Market banner.
As a result of the acquisition, Misfits Market, which has raised more than $525 million in funding, says it will be well positioned to continue building out a supply chain that tackles inefficiency, lowers prices, and continues to fundamentally improve how consumers shop for groceries online.
While the brands will continue separate operations in the short term, Misfits Market founder and CEO Abhi Ramesh will serve as CEO of the combined company, with executives from Imperfect Foods joining the Misfits Market leadership team.
“We have a tremendous opportunity to advance the shared mission of both brands, which is nothing less than a fundamental re-imagining of both the grocery category and the broken U.S. food system,” said Abhi Ramesh, CEO and Founder of Misfits Market.
“The strengths of the Imperfect Foods organization, from its in-house delivery fleet and robust private label program to its sustainability commitments and innovation, add immediate scale and depth to what we’re building at Misfits Market.”
“Scale matters in grocery, and this combination makes us a truly meaningful disruptor in the space,” stated Imperfect Foods CEO Dan Park.
“Both organizations have made significant progress as individual brands—together we have already rescued nearly 500 million of pounds of food that may otherwise have gone to waste, and driven innovation in a category propped up by antiquated technology and thinking. The combined experience and expertise of this newly merged team will exponentially increase our ability to take on established players in the traditional grocery space.”