Grocery delivery service The Rounds has been acquired by Misfits Market.
Misfits Market, the Delanco, N.J.-based company known for selling surplus or "ugly" produce online, has made a significant move in the sustainable grocery industry with its acquisition of The Rounds, a New York City-based startup specialising in member-based restocking of grocery and household essentials using reusable packaging.
The strategic impact of this acquisition is multifaceted. Misfits Market will now be able to provide a broader range of sustainable grocery options, reducing waste and encouraging reusable packaging. The Rounds brings technological innovation through AI-powered inventory and restock management, optimising supply chains and reducing inefficiencies in sustainable grocery delivery.
This integration supports Misfits Market’s mission to minimise food waste and environmental impact while scaling operations. By combining forces, Misfits Market strengthens its position as a leader in the sustainable grocery sector. This not only broadens consumer access to sustainable products nationwide but also sets a competitive standard that could accelerate the adoption of eco-friendly practices across the grocery industry in the U.S.
The acquisition supports enhanced consumer engagement through subscription and membership models that promote reuse and reduce single-use packaging waste, influencing more sustainable shopping habits in grocery retail. Misfits Market plans to expand its assortment via the acquisition to ensure that products don't go to waste.
Abhi Ramesh, founder and CEO of Misfits, stated that the acquisition furthers the joint mission of both companies to reduce waste and inefficiency in the supply chain. This new distribution channel will enable Misfits to reach hundreds of thousands of new consumers with its lower-emission delivery model.
In a bid to position itself as the leading acquisitive force in sustainable grocery, Misfits Market plans to leverage its scaled infrastructure, deep supply chain expertise, and mission-first model to bring a superior grocery experience to more people across the United States.
The Rounds members will receive a $30 credit and a free year of Misfits+ membership, a program that provides exclusive weekly deals on groceries and free shipping. Misfits will inform members directly of service updates, timing, and any changes to local operations.
Both The Rounds and Misfits have leveraged innovative solutions to make online grocery more sustainable, including the use of reusable packaging with eco-friendly materials, right-sizing required packaging, and efficient last-mile delivery and reverse-logistics capabilities. The Rounds built a loyal following in Atlanta, Philadelphia, and Washington, D.C., by rethinking the last mile of grocery delivery through a near-zero-waste recurring member experience with reusable packaging.
Misfits Market, which addresses waste within the food system, saving an average of 500,000 pounds of food from waste or lesser outcomes each week, has raised over $525 million in funding to date. This acquisition marks Misfits' second in three years, following the successful 2022 integration of Imperfect Foods.
Overall, Misfits Market's acquisition of The Rounds strategically positions the company to drive innovation, scale sustainable retail solutions, and advance environmental goals in the U.S. grocery industry, potentially accelerating the sector’s shift toward sustainability.
[RELATED: How Misfits Market Is Building a Better Grocery System] (This is a related article, not a fact)
- Misfits Market's acquisition of The Rounds will extend their sustainable grocery offerings, implementing reusable packaging to reduce waste and promoting an eco-friendly lifestyle.
- The integration will bring technological advancements to Misfits Market, as The Rounds' AI-powered inventory and restock management aim to optimize supply chains and reduce inefficiencies in the food-and-drink business.
- With the acquisition, Misfits Market hopes to expand their assortment of products and strengthen their position as a leader in the sustainable grocery sector, ultimately influencing the wider grocery industry to adopt more eco-friendly practices.
