GrubMarket Raises $200 Million Series E to Accelerate Profitable Growth and IPO Readiness; Mike Xu, Griffin Schroeder, and Natalie Hwang Discuss

Tue. November 16th, 2021 - by Melissa De Leon Chavez

SAN FRANCISCO, CA - Wholesaler and San Francisco-based food technology company GrubMarket is making waves in the retail scene. Recently, the company announced it has raised $200 million in what it states as a massively oversubscribed Series E funding round. To date, this round brings GrubMarket’s valuation to over $1.2 billion.

Mike Xu, Chief Executive Officer, GrubMarket“GrubMarket has already achieved an annual run rate of $1 billion, with over 300 percent growth this year in e-commerce revenues and over 3,500 percent growth in SaaS software sales, while maintaining strong net profitability,” commented Mike Xu, Chief Executive Officer of GrubMarket. “Moreover, GrubMarket is aiming to debut on the public market within the next 11 months or so. However, the only success criterion of my entrepreneurial pursuit remains whether I am able to eventually scale GrubMarket to achieve $100 billion in annual revenues (e-commerce and software sales combined), offering both first-mile and last-mile digital solutions for the food supply chain industry in not only the U.S. but also across the globe.”

During this funding round, the backers consisted of Tiger Global Management, funds and accounts managed by BlackRock, Liberty Street Funds, Apeira Capital, Japan Post Capital, Celtic House Asia Partners, We Capital, and Walleye Capital. According to the release, several more participants contributed to this round but were unnamed.

Griffin Schroeder, Partner, Tiger Global Management“GrubMarket is digitally transforming the trillion-dollar, highly fragmented, old-school food supply chain. They are executing a disciplined, profitable strategy and introducing modern software to the industry. We look forward to being a part of GrubMarket's journey to improve the efficiency and sustainability of the American food ecosystem,” said Griffin Schroeder, Partner, Tiger Global Management.

The wholesaler has exhibited tremendous growth and momentum as of late. GrubMarket frequently pops up on the retail radar with news of several strategic acquisitions including transportation, new tech, or produce suppliers.

Natalie Hwang, Founder and Managing Partner, Apeira Capital Advisors“Under Mike’s vision and exemplary leadership, GrubMarket is well on its way to transforming food distribution through vertical integration of the supply chain with best-in-class technology. We are inspired by both the company’s mission of creating sustainable, data-driven distribution to unlock value for a massive yet inefficient industry, as well as its impressively disciplined approach of driving aggressive but profitable scale to build a durable franchise," added Natalie Hwang, Founder and Managing Partner of Apeira Capital Advisors. “GrubMarket represents an extraordinarily rare breed of company that Apeira Capital is privileged to partner with and to support in its next phase of rapid, nationwide expansion.”

A phase that GrubMarket is already setting its sights on—according to the release, the wholesaler is currently eyeing the Midwest as another market to explore with aims to expand food access from coast to coast.

GrubMarket recently announced it has raised $200 million in what the company states was a massively oversubscribed Series E funding round

“In the next 2–10 years, GrubMarket will also play a critical role in reviving the food ecosystem in the Midwest and addressing the demographical inequalities surrounding access to fresh, healthy food, between the West Coast, East Coast, and central regions of the U.S.,” said Xu.

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