NEW YORK--(BUSINESS WIRE)--Misfits Market, the online grocery platform driven by accessibility, affordability, and sustainability, today announced the acquisition of online grocer Imperfect Foods. 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 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.”
In the United States, food waste is estimated at between 30 and 40 percent of the food supply. With climate change increasingly impacting our food ecosystem, the gaps and inefficiencies in an outdated grocery supply chain have become fault lines, driving up prices and increasing what were already inexcusable levels of waste. Misfits Market and Imperfect Foods have already proven a better model exists—together, both brands will step forward to scale this new approach and deliver a better food system for farmers, suppliers, and customers in every community across the country.
Wilson Sonsini Goodrich & Rosati is serving as legal advisor to Misfits Market. Solomon Partners is serving as exclusive financial advisor to Imperfect Foods, and DLA Piper is serving as legal advisor to Imperfect Foods. The transaction is subject to regulatory approvals and customary closing conditions.
About Misfits Market
Misfits Market, the direct-to-consumer online grocer focused on accessibility, affordability, and sustainability, delivers value by making it convenient to shop, eat, and live better. The company has created the first of its kind food value supply chain focused on building relationships with farmers, distributors, and producers to eliminate food waste while expanding food access. Today, Misfits Market delivers organic produce, high-quality meats and seafood, plant-based proteins, dairy, bakery, wine, and other grocery items to nearly every zip code in 48 states at up to 40 percent off traditional grocery store prices. Founded in 2018, the company is headquartered in Greater Philadelphia and has raised more than $525M in funding. To learn more and order your first box, visit www.misfitsmarket.com.
About Imperfect Foods
Founded in 2015, Imperfect Foods is the online grocer at the forefront of eliminating food waste and building a better food system. Imperfect Foods works directly with farmers and producers to rescue, redistribute, and develop goods across multiple grocery categories, including its own private label offerings. Customers enjoy a fully customizable service that is more affordable and more environmentally friendly than the average trip to the grocery store. To learn more, visit imperfectfoods.com.
Any forward-looking statements contained herein are made as of the date hereof and are subject to risks and uncertainties, many of which are outside of either company’s control, so actual results may differ materially from those expressed or implied by such forward-looking statements.
