How Misfits Market Grew Into A $500 Million Revenue Business

"Grocery stores were discarding mountains of produce that were still good to eat, just not pretty enough to sell. So Ramesh built a simple website, bought a handful of Facebook ads and began selling discounted "mystery boxes" packed with surplus fruits and vegetables at up to 40% below typical grocery store prices."

"Consumers turned to doorstep grocery delivery during Covid, and Misfits positioned itself as the cheaper alternative. Demand surged so dramatically that Ramesh even had to pause the Facebook advertisements."

"As shoppers returned to physical stores, Ramesh diversified the business. Misfits now sells conventional grocery staples alongside its surplus produce, delivering a full-cart experience rather than a surprise box. The company says it generates higher gross margins than traditional grocery chains."

Abhi Ramesh founded Misfits Market in 2018 to address food waste by selling discounted surplus produce through mystery boxes at up to 40% below retail prices. The company rapidly scaled, rescuing over 10 million pounds of food and generating $500 million in annual revenue. During the pandemic, consumer demand for doorstep grocery delivery surged, prompting Misfits to raise $510 million across multiple funding rounds to expand infrastructure. As pandemic demand normalized and shoppers returned to physical stores, Misfits diversified beyond surplus produce to offer conventional grocery staples, creating a full-cart shopping experience. The company now operates over half a million square feet of distribution space nationwide and generates higher gross margins than traditional grocery chains.

Read at Forbes