Food Tech startup and AI-driven supply chain management provider Grubmarket secured $50 million in the Series G round and driven the valuation to more than $3.5 billion. The funds come from Liberty Street Fund, 3spoke Capital, ROC Venture Group, Portfolio, Pegasus Tech Ventures, Joseph Stone Capital, and other investors.
With a fresh capital round and an expanded global footprint, Grubmarket is gearing up for the next phase of growth. This relies heavily on AI to streamline industries that have been long overdue due to digital overhauls.
Founded in 2014 by Mike XU (CEO), Grubmarket operates in all 50 states, operates in more than 70 countries, and plans to expand further. With AI restructuring almost every industry, the company is making big bets on automation and data-driven logistics, making food distribution more efficient and cost-effective.
The company has adopted a rapid growth trajectory, surpassing its revenue of $2 billion in 2024. Xu emphasized that modern funding is not a must, but an opportunity to adjust the company’s valuation to its size, AI-driven innovation, and overall business intensity.
Grubmarket CEO Mike Xu
“Grubmarket has experienced an incredible acceleration of growth over the past 12 months. In 2024, revenue exceeding $2 billion, becoming the largest private food technology company in the United States, but it continues to maintain strong, healthy financial revenue,” Xu said.
“Because our business model is so sustainable, this funding round was not a necessity, it was an opportunity to align our assessments with business growth, AI innovation and the key values we create in the industry.”
The company recently introduced Grubassist AI, an enterprise AI software suite designed for the food supply chain. The system includes business intelligence for business analyst AI assistants, AI-driven ordering agents that handle offline orders from voicemail, PDF and email, and cash flow analyst AI that predicts financial trends for wholesalers and distributors.
Beyond software, Grubmarket is expanding its scope. He recently entered South Africa and acquired one of Texas’ largest foodservice companies and took over Good Eggs, a struggling online grocery provider on the West Coast. The turnaround was quick. Goode’s egg reached net profit within two months after years of economic loss.
Grubmarket’s platform serves tens of thousands of customers, including grocery chains, restaurants, hotels, schools, government facilities, and farms. Xu and his team position the company as the only enterprise AI solutions provider in the food supply chain, and aims to continue to slow the latest technology in digital adoption.
Its environmental initiative, Sustainable California, has been operating since 2023. The program supports farmers, promotes organic farming and invests in planting. As part of its 2025 initiative, the company will work with nonprofits to help restore wildfires in Los Angeles by planting trees.
“We are committed to providing a range of services to our customers,” said Kevin Moss, president of Private Share Funds, managing director of Liberty Street Advisors. “The growth and size of the company is supported by its established business foundations and commitment to sustainability, which benefits farmers in California and the US.”
“Ensuring access to nutritious foods should be our foundation. Without it, nothing else is important,” says Aaron Stafford of Roc Venture Group.
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