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GrubMarket raises $50M at a $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, has announced a $50 million Series G funding round, raising its valuation to over $3.5 billion. The round includes investments from Liberty Street Funds, 3Spoke Capital, and others. The company, which initially focused on healthy food procurement and distribution, has expanded its operations significantly, now boasting 12,000 employees and a presence in multiple countries. GrubMarket plans to use the new funds to enhance its technology, particularly AI, to improve customer business management and streamline data processing. Despite potential impacts from U.S. tariffs, the company remains focused on growth and acquisitions.

GrubMarket's revenue is projected to reach $2.4 billion this year, and it is profitable on an EBITDA basis. The company has been acquiring struggling food distribution startups, such as Good Eggs, to expand its direct-to-consumer offerings. GrubMarket's technology includes AI software for the food supply chain, offering business intelligence and cash flow management tools. The company is not currently pursuing a public listing but continues to innovate in AI and vertical SaaS solutions, aiming to transform the U.S. food supply chain industry.

Key takeaways:

  • GrubMarket has raised $50 million in a Series G funding round, valuing the company at over $3.5 billion, with plans to invest in AI technology to enhance its food distribution services.
  • The company is on track to achieve $2.4 billion in revenues this year and is profitable on an EBITDA basis, with a focus on acquisitions to expand its business.
  • GrubMarket's technology aims to streamline the food supply chain by using AI to manage unstructured data from various offline sources, enhancing efficiency for its customers.
  • GrubMarket has expanded its operations internationally, with a presence in multiple countries and a procurement and distribution network covering 70 countries.
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