Imperfect Foods Gets $95 Million Series D Commitment

Sustainable grocery delivery company Imperfect Foods said it has landed a $95 million Series D investment commitment. Insight Partners and Norwest Venture Partners will head up the Series D financing, according to an announcement.

“This planned funding underscores the solid infrastructure, supply and customer experience upon which we’ve built this company,” Imperfect Foods CEO Philip Behn said in the announcement.

Last year, Imperfect Foods finished its migration to a countrywide full-service grocer from a regional delivery service geared toward produce. It intends to double its capacity and selection of product in current facilities, bolster the shopping experience, accelerate its private label program, and help agricultural producers and partners with the new investment.

The company, which was started in 2015 with the aim of putting an end to the 40 percent of the unspoiled food discarded in the U.S. annually, started business by providing shoppers with produce that was extra or considered imperfect but was otherwise fresh and healthy. It grew into grocery staples in 2019 to encompass seafood, meat, dairy and shelf-stable products.

“Imperfect Foods’ supply chain is unmatched and quickly gets fresh groceries from producers to consumers with minimum intermediaries and waste, completing the last mile in their own vans,” Adam Berger, Insight Partners’ managing director and Imperfect Foods’ lead director, said in the announcement.

As the PYMNTS Omnichannel Grocery Report demonstrates, an increasing number of consumers purchase at least some of their supermarket items through the web. According to poll data, 79.6 percent of all American consumers who purchase groceries report buying them in-store, although 63.9 percent make at least one of their usual grocery purchases online.

According to the data, consumers’ willingness to purchase through the web is very much influenced by what they are purchasing. PYMNTS research demonstrates that 36.6 percent of respondents purchase merchandise such as cleaning items through the web, and 28.4 percent do the same with pharmacy merchandise.