GrubMarket, a San Francisco-based e-commerce startup, has found a new backer with more than 160 years of experience — General Mills. The young company provides a platform that connects farmers with consumers looking for the same produce, meat, and artisanal goods they could usually only find at the local farmer’s market. In its latest fundraise, GrubMarket came away with $120 million from the cereal-maker and other new supporters, including Squarepoint Capital, Portfolia, and Grosvenor Food & AgTech. This gives the startup an impressive valuation of $2 billion.
According to CEO Mike Xu, GrubMarket is already profitable, which is an attractive attribute to investors, and will use the new infusion to focus on acquisitions. Since its founding in 2014, the company has been active in the M&A market, making more than 30 acquisitions since 2019 alone. In August 2022, it announced the addition of New York-based Frantoni Corp. and Kansas-based Granite State Software, which both specialize in food supply chain software solutions. Including the capital from the current round, the company has raised more than $500 million in its mission to bring farmers and consumers closer.