SAN FRANCISCO — Imperfect Foods announced it received a commitment to fund $95 million in a Series D growth investment. The Series D financing will be led by Insight Partners, which led the company’s $72 million Series C round eight months ago, and Northwest Venture Partners.
Launched in 2015 with the goal of eliminating the 40% of unspoiled food thrown away in the United States, the San Francisco-based startup began its operations by delivering produce to consumers that was in surplus, off-sized or misshapen but otherwise healthy and fresh. In 2020 the company transitioned from a regional produce-focused delivery service to a national full-service grocer by adding hundreds of items to its catalog.
Last year also saw the company partner with several industries to repurpose unused food that otherwise would have gone uneaten during the pandemic. It teamed up with airlines to buy allotments of first-class cheese plates and repackaged popcorn kernels from underutilized movie theaters, for example.
Imperfect Foods will use funds from the Series D round to double capacity and product assortment in existing facilities, expand its private label program and improve its shipping experience, said Philip Behn, chief executive officer.
“This planned funding underscores the solid infrastructure, supply and customer experience upon which we’ve built this company,” Mr. Behn said. “2020 proved there is a real and growing demand for the marriage of sustainability and convenience in retail food. As the leading direct-to-consumer online grocer with a coast-to-coast footprint and our own last-mile delivery fleet, we plan to continue improving the customer experience by doubling down on technology and building the ‘perfect imperfect assortment’ for our customers.”