Misfits Market, an online platform that provides imperfect groceries to help minimize waste, announced the acquisition of home restocking services on Friday.
Due to this deal, Misfits Market plans to collect more than 250 items from round inventory. This allows companies to be divided into other categories such as household goods, including cleaning supplies and paper products.
To enable the Tour to turn customers into the Misfits market, the company offers a $30 credit line, as well as a one-year free subscription to its new Misfits+ membership, which includes exclusive weekly deals and free shipping.
The company declined to disclose the terms of the transaction. It also cannot confirm whether layoffs will become part of the acquisition, as decisions are still being completed. The round has raised $66 million from investors including Andreessen Horowitz, Annie Kadavy (Redpoint Ventures), Construction Capital and First Round Capital.
In addition to diversifying its products, the deal will allow the Misfits Market to work with former partners on the Tour, including major multifamily operators such as Avalonbay, Greystar, etc.
The MISFITS market is also aimed at gaining a stronger foothold in the industry through this deal. It is worth noting that the company will continue to pursue mergers and acquisitions as part of a broader growth strategy, especially as consumers recognize food waste and sustainability.
"This market is mature and we're always looking for deals," Misfits Market CEO Abhi Ramesh told TechCrunch.
This marks Misfits Market as another competitor in the market after buying imperfect food in 2022.
Founded in 2018, Misfits Market offers products that are rejected by farmers and suppliers because people are considered too ugly to sell in grocery stores, usually due to too small, strange shapes or discoloration.
Meanwhile, these tours have provided sustainable grocery delivery since 2019, which refils home essentials with reusable packaging.
According to the company, the Misfits market has saved more than 238 million pounds of food so far. These rounds save over 1 million pounds of packaging waste and estimated, saving an average of 500,000 pounds of food per week.