SAN FRANCISCO, May 20, 2020 /PRNewswire/ — As a result of significant momentum in the business and continued dedication to improving the food supply chain, Imperfect Foods has closed a Series C funding round of $72 million, led by Insight Partners. The round was also supported by existing investors of the company, including Series B lead Norwest Venture Partners.
These funds will fuel continued expansion of the grocery delivery service across the country, increase capacity in new and existing fulfillment centers, expand assortment and enhance technology to better connect producers, farmers and customers to the brand's mission: to eliminate food waste and build a better food system.
Since launching in 2015, Imperfect Foods has remained hyper focused on eliminating food waste and supporting farmers and producers when it comes to excess and imperfect products. The company now rescues and redistributes food across multiple grocery categories – including produce, shelf-stable goods, dairy, meat and seafood. Its performance and agility during the COVID-19 pandemic illustrates that this mission-driven model is poised for success in the long term.
Over the past year, Imperfect Foods has seen impressive growth across key areas of the business. Specifically, average order sizes have doubled year over year and weekly order volumes have doubled since January, with more customers taking advantage of the convenient service and expanded product assortment. Tying back to its mission, Imperfect Foods is on track to save more than 200 million pounds of food from going to waste in 2020.
"We're energized by the continued support from investors as we eliminate food waste and build a better food system for everyone," said CEO Philip Behn. "We're illuminating vast vulnerabilities within our food supply chain and increasing access to fresh and affordable groceries. The partnership with Insight Partners comes at a unique moment – our model has not wavered in the time of COVID-19 and we've accelerated our roadmap as a result. This highlights how, even during times of unfathomable global hardship, we are an essential part of the safety net for hundreds of thousands of customers across the country."
"The grocery industry has been evolving for years, yet this particular moment highlights an urgent need to reinvent our food supply chain with innovative technology, and keep people safe," said Adam Berger, Managing Director at Insight Partners, who will be joining the Board of Directors at Imperfect Foods. "Imperfect Foods plays an integral role in this industry, merging a clear social mission with affordability and convenience. We're excited to work closely with the team as they enter this monumental phase of growth, and push the industry towards a more intentional and efficient food system."
Prior to this round, Imperfect Foods raised $47M from investors including Norwest Venture Partners, Maveron, Shasta Ventures, Flybridge, Corigin Ventures, and Kevin Durant. The new funds bring Imperfect Foods' total raised to $119M. Cowen served as Imperfect Foods' exclusive financial advisor on this transaction.