Fresh produce is prepared for distribution at the GrubMarket warehouse in San Francisco, Calif. on Friday, June 15, 2018.
Paul Chinn | San Francisco Chronicle | Hearst Newspapers | Getty Images
Food logistics company GrubMarket said Tuesday that it has raised $50 million in a Series G funding round, valuing the San Francisco-based firm at more than $3.5 billion.
The new round includes Liberty Street Funds, 3Spoke Capital, ROC Venture Group, Portfolia, Pegasus Tech Ventures, Joseph Stone Capital, and other unnamed investors.
“GrubMarket has experienced an incredible acceleration in growth over the last 12 months – our revenues surpassed $2 billion in 2024, and we became the largest private food technology company in the United States, while continuing to maintain a strong and healthy financial bottom line,” founder & CEO Mike Xu said in a statement announcing the funding.
The company, founded in 2014, currently does business with more than 70 countries, serving businesses and consumers in all 50 states plus Canada, and has over 12,000 employees.
Despite a tough macroeconomic environment fueled by uncertainty surrounding tariffs, much of the company’s growth has come through acquisitions. Companies that GrubMarket acquires use its software suite, which includes sales and online ordering features, inventory management, lot traceability, and automated routing and logistics.
The company says the funding will be used to double down on artificial intelligence.
“As our business model is highly sustainable, this funding round was not a necessity, but rather an opportunity to align our valuation with the scale and strength of our business growth, our AI tech innovations, and the significant value we create for the industry,” Xu said.
The company’s Farm-GPT, an analytics tool powered by generative AI that uses real-time and historical pricing data from USDA and proprietary sources, helps farmers and growers maximize profits and optimize crop selection. It also has a broader GrubAssist suite of AI-powered virtual assistants delivering real-time business insights and analysis.
GrubMarket has been named to CNBC’s annual Disruptor 50 list the past two consecutive years, ranked No. 23 in 2024 and No. 41 in 2023.
Sign up for our weekly, original newsletter that goes beyond the annual Disruptor 50 list, offering a closer look at list-making companies and their innovative founders.