GrubMarket has raised about $50 million in funding at a pre-money valuation of $4.5 billion, capital the company plans to use to expand its artificial intelligence (AI) software, ecommerce operations and acquisition strategy across the food supply chain.
The round included investments from Future Food Fund, Portfolia Funds, Liberty Street Funds, RD Heritage Group, Flume Ventures, MY Securities and other participants, according to the company. GrubMarket described the raise as a “significantly up round,” following a year of acquisitions and product launches aimed at embedding AI into produce distribution, inventory management and trading operations.
CEO Mike Xu said GrubMarket did not require the funding to sustain operations. Instead, it intends for the funding to reflect the company’s recent growth in ecommerce and software.
“Since we have a self-sustaining business model, this funding round was not a necessity,” Xu said in a statement. “Rather, we saw it as an opportunity to align our company’s valuation with the new level of scale and strength we have achieved.”
Recent GrubMarket acquisitions
Over the past year, GrubMarket has expanded both its distribution footprint and its software portfolio.
In June 2025, the company acquired Coast Citrus, a large U.S. supplier of tropical produce. In April 2025, it acquired Delta Fresh Produce. Through its earlier acquisition of Procurant, GrubMarket added a SaaS ecommerce and trading platform that the company said processes about $5.5 billion in gross merchandise volume annually for more than 850 customers across 14 countries.
Alongside those deals, GrubMarket introduced two AI software agents in 2025 aimed at automating operational tasks common in produce distribution. It designed its Inventory Management AI Agent, launched in July, to automate replenishment decisions, shrink tracking and stock rotation. And its Reporting AI Agent, introduced in September, automates business analysis and report generation on scheduled intervals.
The company said it designed the tools specifically for food distribution, where perishability, supply variability and price volatility complicate inventory planning.
Changes in GrubMarket operations
GrubMarket operates as both a food distributor and a software provider, a combination executives said allows the company to design AI systems based on real operating conditions.
The company said it now operates in all 50 states and has a presence in Argentina, Canada, Chile, Colombia, Egypt, India, Mexico, South Africa and Spain, doing business in more than 70 countries. It was named to CNBC’s Disruptor 50 list in 2023, 2024 and 2025.
Investors cited the company’s operational scale and profitability as key factors in the round.
GrubMarket also highlighted progress in its “Sustainable California” initiative, launched in 2023 to support farmers and environmental restoration.
In 2025, the company partnered with One Tree Planted to plant more than 100,000 trees in the Sierra Nevada region affected by the 2013 Rim Fire. It also worked with CCOF to sponsor organic transition programs for socially disadvantaged farmers and provided free access to its AI software tools to California growers during the year.
How GrubMarket plans to use its $50 million in funding
The $50 million GrubMarket funding comes as food distributors and produce suppliers increasingly adopt digital ordering systems, API-based trading networks and AI-driven planning tools to manage tight margins and unpredictable supply conditions. The sector has long relied on phone orders, spreadsheets, and manual forecasting, but perishability and price swings are pushing companies toward more automated systems.
By combining distribution assets with software and AI agents, GrubMarket is positioning itself for a phase of modernization in food logistics driven by embedded decision tools inside inventory, purchasing and reporting workflows rather than traditional eCommerce storefronts.
Xu said the company plans to use the funding to expand technology investment, hiring, financial infrastructure and acquisitions while maintaining what he described as a self-sustaining operating model.
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