The Rounds, a household replenishment service, has been acquired by Misfits Market, an online platform that delivers defective groceries to reduce waste.
Misfits Market intends to acquire more than 250 goods from The Rounds' inventory as a consequence of the agreement.
This enables the business to expand into other markets, like home goods like paper goods and cleaning supplies.
The firm is giving out a $30 credit and a free one-year subscription to its new Misfits+ membership, which includes free delivery and special weekly deals, in an effort to get The Rounds customers to switch to Misfits Market.
The company refused to reveal the terms of the agreement. Additionally, because choices are still being made, it was unable to confirm whether layoffs will be a part of the acquisition.
Investors including Annie Kadavy (Redpoint Ventures), Andrew Chen (Andreessen Horowitz), Construct Capital, and First Round Capital have contributed a total of $66 million to The Rounds.
The agreement would enable Misfits Market to work with previous partners from The Rounds, including significant multifamily operators like AvalonBay, Greystar, and Related, in addition to broadening its product line. As a result of the agreement, Misfits Market also hopes to strengthen its position in the market.
Notably, the business will keep pursuing M&A as part of a larger growth strategy, particularly at a time when consumers are becoming more conscious of sustainability and food waste.
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After acquiring Imperfect Foods, a rival in the market, in 2022, this is Misfits Market's second acquisition. Established in 2018, Misfits Market sells produce that farmers and suppliers have rejected because it is deemed too "ugly" to sell in supermarkets. This is frequently because the produce is too little, strangely shaped, or discolored.