Misfits Market Acquires The Rounds to Fight Food Waste

Misfits Market Acquires The Rounds to Expand Grocery Offerings

Misfits Market, the online retailer focused on reducing food waste through the delivery of imperfect produce, announced the acquisition of The Rounds, a household restocking service, on Friday.

This acquisition will result in Misfits Market incorporating over 250 products from The Rounds’ existing catalog.

Diversification and Customer Transition

The integration of these items will allow Misfits Market to broaden its product range beyond produce, venturing into household necessities.

These new categories include cleaning supplies and various paper products.

To facilitate a smooth transition for The Rounds’ customer base, Misfits Market is providing a $30 credit.

Additionally, customers will receive a complimentary one-year subscription to the newly launched Misfits+ membership, granting access to exclusive weekly discounts and free shipping.

Deal Details and Future Strategy

The financial specifics of the acquisition have not been publicly disclosed by either company.

Furthermore, the possibility of workforce reductions as a consequence of the merger remains uncertain, with final decisions still pending.

The Rounds had previously secured $66 million in funding from investors including Andrew Chen (Andreessen Horowitz), Annie Kadavy (Redpoint Ventures), Construct Capital, and First Round Capital.

Expanding Partnerships and Market Position

This deal enables Misfits Market to leverage existing relationships cultivated by The Rounds.

Key partnerships include collaborations with prominent multifamily operators like AvalonBay, Greystar, and Related.

Misfits Market intends to strengthen its position within the industry through this strategic move.

The company plans to actively pursue further mergers and acquisitions (M&A) as part of its overall growth strategy, capitalizing on increasing consumer interest in food waste reduction and sustainability.

CEO Statement and Previous Acquisition

“This market is ripe for consolidation, and we are constantly looking at deals,” stated Abhi Ramesh, CEO of Misfits Market, in an interview with TechCrunch.

This acquisition represents Misfits Market’s second major purchase, following the acquisition of Imperfect Foods in 2022, another competitor in the imperfect produce market.

Company Backgrounds and Impact

Founded in 2018, Misfits Market specializes in sourcing produce deemed unsuitable for traditional grocery stores.

This often includes fruits and vegetables that are too small, irregularly shaped, or exhibit minor cosmetic imperfections.

The Rounds, established in 2019, offered a sustainable grocery delivery service focused on refilling household essentials using reusable packaging.

Environmental Impact

To date, Misfits Market reports having rescued over 238 million pounds of food from potential waste.

The Rounds has successfully saved more than 1 million pounds of packaging waste and is projected to save approximately 500,000 pounds of food waste on a weekly basis.