Misfits Market acquires AI-powered delivery platform
Misfits Market has made a sustainability-focused acquisition.
The online grocer, known for selling products that curb food waste, has acquired AI-powered last mile delivery platform The Rounds.
Misfits Market says the acquisition makes it a “leading acquisitive force in sustainable grocery,” adding that both companies have pioneered solutions to make online grocery more sustainable, including reusable packaging, using eco-friendly materials, right-sizing required packaging and more.
Founded in 2019, The Rounds is based in New York City and serves members in Atlanta, Philadelphia and Washington, D.C. The news marks Misfits Market's second acquisition in three years, following the 2022 deal to acquire Imperfect Foods.
"This acquisition furthers the joint mission of both Misfits Market and The Rounds to reduce waste and inefficiency in the supply chain while expanding our offering," said Abhi Ramesh, founder and CEO of Misfits Market. "The Rounds earned a loyal following by making low-waste, high-quality shopping seamless on a local level. We're excited to welcome their members to Misfits Market, where that same mission continues at a national scale with more selection and deeper impact."
Additionally, Misfits Market said the acquisition will expand its B2B offering with some of the largest corporate and multifamily operators nationwide via their partnerships with The Rounds. The new distribution channel will allow Misfits Market to reach hundreds of thousands of new consumers with its lower-emission delivery model.
[READ MORE: Misfits Market launches supply chain solution for perishable brands]
To celebrate the deal, members of The Rounds will get a $30 credit when they join Misfits Market plus a free year of Misfits+ ($69 value), a membership program that unlocks exclusive weekly deals on groceries and free shipping. They will also enjoy delivery by Misfits Market's first-party driver network and access to its packaging return program.
"We have a great opportunity to advance our shared mission, fundamentally reimagining how more people access quality grocery essentials and household staples more sustainably," said The Rounds co-founder and CEO Alex Torrey. "Going forward, The Rounds members will access all the benefits of Misfits Market.”
Founded in 2018, Misfits Market serves nearly every ZIP code in the contiguous United States, has rescued more than 238 million pounds of food to date, and has raised more than $525 million in funding. The retailer works to reduce supply chain costs, lower prices and reduce food waste by directly sourcing food items which may not have an appearance deemed acceptable by other grocery retailers but are fresh and high-quality.
