GrubMarket, the startup that connects local farmers with restaurants and stores, has raised $25 million in venture funding.
According to a report in TechCrunch citing the company, the Series C round was supposed to be for $15 million but was oversubscribed. The round of fundraising was led by WI Harper Group and Digital Garage. Other new investors include Evolv Ventures, University Growth Fund, Arancia International and CentreGold Capital. Existing investors ACE & Company, GCV Capital, Fusion Fund, Bascom Ventures and others also participated in the investment round. To date GrubMarket has raised $89 million.
Chief Executive Mike Xu wouldn’t reveal the company’s valuation, but a source said the pre-money valuation was $230 million, according to the report. Following the round, the firm has a valuation of about $255 million, noted the report. Xu said the company’s annual run rate is $150 million, versus $100 million when it raised $32 million last year. The executive said the company is profitable and that proceeds from the funding will go to invest in more technology and acquisitions.
In addition to delivering farm fresh products to restaurants and stores, the startup has created its own software as a service platform that enables suppliers and vendors to manage supplies and customer relationships. Outside of technology, Xu told the news outlet GrubMarket will look to make buys in Los Angeles and San Diego, as well as expand into New York and New Jersey. The company is focused on purchasing business-to-business rivals that work with farmers and wholesalers to connect them with restaurants, stores, and schools. “We have a few more major acquisitions to close within the next a couple months,” Xu said in the report.
According to the report, the funding comes ahead of a potential initial public offering (IPO) the company could file for this year. The investors backing the company also provide some insight into its future. Evolv, for one example, is backed by Kraft Heinz, while Digital Garage of Japan will help it expand into Asia.