GrubMarket, a leading AI-driven food distribution and e-commerce platform, has secured $50 million in Series G funding, bringing its valuation to over $3.5 billion.
The round was led by Liberty Street Funds, 3Spoke Capital, and Pinegrove Capital Partners, with participation from ROC Venture Group, Portfolia, Pegasus Tech Ventures, and Joseph Stone Capital.
Revolutionizing the $1 Trillion Food Distribution Industry with AI
GrubMarket plans to use the fresh capital to advance AI-driven enterprise software that helps food wholesalers, distributors, and retailers manage complex supply chains. The company’s AI-powered tools automate tasks like:
- Order processing and inventory management
- Supply chain optimization using real-time data
- Financial analytics and cash flow management for food suppliers
CEO Mike Xu highlighted AI’s role in modernizing the industry:
“Many food businesses still rely on handwritten notes, voicemails, and outdated systems. AI can digitize and streamline these operations, making the supply chain more efficient.”The startup also collaborates with energy providers and installation firms to enhance accessibility.
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Strong Financial Growth & Market Expansion
- $2.4 billion in projected revenue for 2025, up from $2 billion in 2024
- Profitable on an EBITDA basis, positioning it for long-term growth
- Expanding operations across 70 countries, including the U.S., Canada, India, Spain, and South Africa
Strategic Acquisitions to Strengthen Market Position
GrubMarket has been actively acquiring struggling food distribution companies to scale its direct-to-consumer and wholesale operations. Notably:
- Acquired Good Eggs, turning it profitable after it faced financial struggles
- Plans to acquire larger wholesalers as aging business owners seek exits
IPO or Private Growth?
When asked about a potential IPO, Xu remained non-committal, stating that the company is open to staying private or exploring alternative funding structures.
Kevin Moss, Managing Director at Liberty Street Advisors, praised GrubMarket’s strategy:
“By integrating AI into food distribution, GrubMarket is transforming a trillion-dollar industry with efficiency and sustainability at its core.”
With $50M in fresh funding, GrubMarket is doubling down on AI-driven supply chain solutions, setting the stage for further expansion and industry disruption.
