Today, popular online grocery service FreshDirect announced that it raised a whopping $189 million round of funding. J.P Morgan Asset Management led the financing with investor contributions by W Capital and AARP Innovation Fund as well.
“We are thrilled to partner with a group of world-class investors led by J.P. Morgan Asset Management at this pivotal time for FreshDirect,” said Jason Ackerman, FreshDirect’s co-founder and CEO, in a statement. "The funding will fuel expansion into new markets, increase capacity with new manufacturing and distribution facilities, and launch new businesses that meet today’s consumers’ needs as their preferences and buying habits evolve.”
Launched in 2002, and profitable since 2010, FreshDirect’s success has stemmed from its mission to curate and source the freshest farm-to-table items to its customers. The company currently exceeds $600 million in annual revenue through online market shares in New York City and Philadelphia.
Earlier this year, FreshDirect expanded its product offerings with the launch of FoodKick, an on-demand, mobile-first delivery service that caters to the spontaneous appetites of city dwellers with a localized selection of food and alcohol — all delivered within an hour’s notice. FoodKick got its start in Brooklyn and Queens and will be now expanding into Manhattan.
“As demand for fresh ingredients delivered to your door continues to rise, high quality food, produce and packaged goods providers are drawing significant attention from the investment community,” said Larry Urein, Head of J.P. Morgan Asset Management’s Private Equity Group, in the statement.
The new capital will go towards launching FreshDirect in more cities and expanding the company’s business services.
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