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GrubMarket raises $50M at $3.5B+ valuation to build AI for the $1 trillion food distribution industry | TechCrunch

Mar 18, 2025 - techcrunch.com
GrubMarket, a food e-commerce startup, announced a $50 million Series G funding round, raising its valuation to over $3.5 billion. Despite macroeconomic challenges like U.S. tariff hikes, GrubMarket continues to expand, focusing on technology to enhance its operations. The company aims to digitally transform the American food supply chain by connecting consumers with local fresh produce suppliers. GrubMarket plans to use the new funds to develop AI technologies that help customers manage data and improve business operations. The company is also eyeing acquisitions to consolidate its position in the food distribution market.

With projected revenues of $2.4 billion this year, GrubMarket is profitable on an EBITDA basis and is expanding its presence internationally, covering 70 countries. The company has grown significantly since its inception, leveraging AI-powered software solutions to streamline the food supply chain. CEO Mike Xu remains focused on technological advancements and acquisitions, while staying relatively unaffected by current tariff issues. GrubMarket's growth strategy includes enhancing its AI offerings and potentially exploring public listing options in the future.

Key takeaways:

  • GrubMarket raised $50 million in a Series G funding round, valuing the company at over $3.5 billion, despite macroeconomic concerns.
  • The company plans to use the funds to enhance its AI technology to help customers manage their businesses more efficiently.
  • GrubMarket is on track to make $2.4 billion in revenues this year and is profitable on an EBITDA basis, with plans for further acquisitions.
  • GrubMarket is expanding its presence internationally and has released comprehensive AI software for the food supply chain industry.
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