GrubMarket Receives $120 Million Backing From Investors Including General Mills; Mike Xu and Johnny Tran Comment
SAN FRANCISCO, CA - GrubMarket is closing out the week with new equity from multiple backers. Overall, the wholesaler raised $120 million, announcing that it is now valued at more than $2 billion. Among the backers were General Mills’ venture arm, 301; Squarepoint Capital; Portfolia; and Grosvenor Food & AgTech.
“We’re a very profitable business and don’t need financing for working capital purposes—we’ll use proceeds for mergers and acquisitions,” said Mike Xu, Chief Executive Officer of GrubMarket. “We want to digitally transform the American food supply chain industry.”
A report from Bloomberg stated that GrubMarket is eager to acquire traditional, offline wholesalers and distributors. The company is reportedly operating at an annual run-rate of roughly $1.5 million and is on track to achieve net profitability this year.
The report went on to note that over the past four years, GrubMarket has completed a whopping 60 acquisitions. Last year, the wholesaler raised $200 million with a valuation of over $1.2 billion.
“As an industry, we need innovation not only on the foods consumers are seeking, but also on the way food gets to consumers,” Johnny Tran, Managing Director of 301, said in a statement. “GrubMarket’s software-based approach is re-imagining produce distribution, automating tasks such as inventory management to reduce waste.”
As this company continues to achieve its operational goals, ANUK will be here to report.