Misfits Market, an online platform that provides incomplete food to minimize waste, announced its acquisition of household refill services on Friday.
As a result of the transaction, Misfits Market will take over 250 items from the round inventory. This allows the company to diversify into additional categories such as cleaning supplies and paper products, such as household items.
To move round customers into the Misfits market, the company will offer $30 credit and a free one-year subscription to the new Misfits+ membership.
The company refused to disclose the terms of the transaction. Additionally, the decision was still finalised, so it was not possible to confirm whether the layoffs would become part of the acquisition. The round raised a total of $66 million from investors including Andrew Chen (Andreesen Horowitz), Annie Gaddaby (Redpoint Venture), Construction Capital and First Round capital.
Under this agreement, that agreement allows Misfits Market to work with former partners in the round, including major multifamily operators such as Avalonbay, Greystar and related.
Misfits Market also aims to gain a stronger foothold in the industry as a result of trading. In particular, the company will continue to pursue M&A as part of its broader growth strategy, especially during a period of growing consumer awareness of food waste and sustainability.
“This market is ripe for integration and we are constantly looking at the trade,” Misfits Market CEO Abhi Ramesh told TechCrunch.
This marks the second acquisition of Misfits Market after buying incomplete food in 2022, another competitor in the market.
Founded in 2018, Misfits Market offers produce that has been rejected by farmers and suppliers as it is considered “ugh” to sell at grocery stores.
Meanwhile, Round has been offering sustainable grocery delivery services since 2019 that restock home essentials using reusable packaging.
The company said Misfits Market has rescued more than 238 million pounds of food so far. The Round saved more than 1 million pounds of packaging waste and estimates to save an average of 500,000 pounds of food each week.
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