Misfits Market Acquires The Rounds to Expand Sustainable Grocery Delivery

Misfits Market, an online grocery platform focused on reducing food waste by delivering imperfect produce, has acquired The Rounds, a service specializing in household restocking with a focus on sustainability. The acquisition, announced recently, aims to broaden Misfits Market’s offerings and strengthen its position in the growing market for environmentally conscious consumer goods.

As part of the deal, Misfits Market will integrate over 250 items from The Rounds’ inventory, expanding its product range to include household essentials like cleaning supplies and paper products. This move allows Misfits Market to diversify beyond its core offering of rescued produce and cater to a wider range of consumer needs.

To facilitate the transition for The Rounds’ existing customer base, Misfits Market is offering a $30 credit and a complimentary one-year subscription to its Misfits+ membership. This membership provides exclusive weekly deals and free shipping, incentivizing customers to switch to the Misfits Market platform.

While the financial terms of the acquisition remain undisclosed, The Rounds has secured $66 million in funding from investors, including prominent names such as Andrew Chen (Andreessen Horowitz), Annie Kadavy (Redpoint Ventures), Construct Capital, and First Round Capital.

Beyond expanding its product offerings, Misfits Market will also collaborate with former partners of The Rounds, including major multifamily operators like AvalonBay, Greystar, and Related. These collaborations will help Misfits Market to strengthen its industry connections and expand its reach.

Misfits Market views this acquisition as part of a broader growth strategy that includes pursuing mergers and acquisitions (M&A). The company aims to capitalize on the increasing consumer awareness of food waste and sustainability.

“This market is ripe for consolidation, and we are constantly looking at deals,” Misfits Market CEO Abhi Ramesh told TechCrunch.

This acquisition marks Misfits Market’s second major move in the market, following its acquisition of Imperfect Foods in 2022, another player in the imperfect produce space.

Founded in 2018, Misfits Market focuses on rescuing produce deemed “ugly” by traditional grocery standards, often due to size, shape, or minor imperfections. The Rounds, established in 2019, offers a sustainable grocery delivery service that refills home essentials using reusable packaging.

To date, Misfits Market reports having rescued over 238 million pounds of food. The Rounds has saved over 1 million pounds of packaging waste and estimates saving an average of 500,000 pounds of food each week.