ImpactAlpha, Apr. 22 – Misfits Market has raised $200 million to sell “ugly” fruits and vegetables. The raise brings funding for the New Jersey-based food waste startup to $301.5 million and pushes its valuation north of $1 billion.
Misfits grew its customer based and order volume by five times last year, shipping 44 millions pounds of food. In January, Imperfect Foods raised $95 million. Investors are eyeing the $14 billion annual investment opportunity in halving U.S. food waste.
Accel and D1 Capital led the round. Valor Equity Partners, Greenoaks Capital, Sound Ventures, Third Kind Ventures and others also participated.
Instead of just focusing on end customers, Misfits supports food suppliers at every level, Accel’s Ryan Sweeney said. As Misfits moved to meet demand for online shopping during the pandemic, it leveraged it’s unique advantage. Founder Abhi Ramesh told Techcrunch, “Because we operate our own fulfillment centers and we have our own internal tech built around this, we were not constrained by the same constraints that physical grocery stores have.”