GrubMarket raises $50M Series H at $4.5B valuation to expand AI-driven food supply chain platform

GrubMarket just closed another major funding round, and this one comes with a clear signal: the company is scaling from strength, not necessity.

The AI-focused food tech company announced today that it has raised around $50 million in Series H financing, valuing the business at $4.5 billion pre-money. The round was backed by Future Food Fund, Portfolia Funds, Liberty Street Funds, RD Heritage Group, Flume Ventures, MY Securities, and other unnamed participants.

For GrubMarket, the timing matters. The company crossed $2 billion in revenue in 2024 and operates profitably across a global footprint that spans all 50 U.S. states and more than 70 countries. This round marks a step up from its March 2025 Series G, when the company raised $50 million at a $3.5 billion valuation, a milestone previously covered by TechStartups.

GrubMarket’s AI Bet Pays Off: Food Tech Giant Raises $50M at $4.5B Valuation

CEO Mike Xu made it clear that this raise was optional. The business was already self-sustaining.

“GrubMarket has experienced an incredible acceleration in growth over the last 12 months and continues to stand out as the largest private food technology company in the United States. Since we have a self-sustaining business model, this funding round was not a necessity; rather, we saw it as an opportunity to align our company’s valuation with the new level of scale and strength that we have achieved with our eCommerce business growth, our AI-powered tech innovations, and the significant ongoing value we generate for the industry,” Xu said.

That framing sets GrubMarket apart from many late-stage raises, which often arrive as lifelines. This one arrived as a recalibration.

Over the past year, GrubMarket has shifted its AI work from internal tooling into products that sit directly inside the food supply chain.

In July 2025, the company launched what it described as the first Inventory Management AI Agent built for the food supply chain. The system automates inventory workflows that have long relied on manual processes, phone calls, and spreadsheets. That release followed another AI milestone in September, when GrubMarket rolled out its Reporting AI Agent, which runs automated business analysis on custom schedules.

These tools reflect a broader bet by the company: software that runs quietly in the background, handles routine work, and leaves humans to focus on decisions that carry weight.

Acquisitions deepen control across the supply chain

GrubMarket’s growth story over the past year cannot be told without its acquisition strategy.

In June 2025, the company completed its largest deal to date, acquiring Coast Citrus, a major U.S. provider of tropical produce. That deal followed the April 2025 purchase of Delta Fresh Produce, a large distributor based in Arizona.

One of the more strategic moves was the acquisition of Procurant, a software platform that facilitates $5.5 billion in annual gross merchandise volume for more than 850 customers across 14 countries. The deal gave GrubMarket direct access to a large SaaS customer base already embedded in global produce trading.

Taken together, these moves tighten GrubMarket’s grip on both the physical and digital layers of food distribution.

A rare position in a fragmented industry

The food supply chain remains one of the least digitized sectors of the global economy. GrubMarket has built a position few companies occupy: enterprise AI software, B2B eCommerce, and physical distribution under one roof.

The company describes itself as the only enterprise AI solutions provider focused exclusively on the American food supply chain. That claim has helped it earn recognition across several industry lists and awards, including three consecutive appearances on CNBC’s Disruptor 50 list and recent honors from RetailTech Breakthrough Awards and The Shelby Report.

Investors point to execution as the differentiator.

“Portfolia is proud to be a long-time investor in Mike Xu and the GrubMarket team, through multiple funds. Mike is a brilliant, strategic, and persistent executive. The team’s continued execution success validates our conviction in Mike’s leadership and in GrubMarket’s ability to redefine how food moves to our tables,” said Trish Costello, CEO and founder of Portfolia Funds.

Future Food Fund echoed that view from an operator’s perspective.

“As the venture arm of a company that operates a major online platform for fresh produce in Japan, we understand how hard it is to build a long-lasting business at scale, and we are impressed by GrubMarket’s strong execution and profitable growth trajectory,” said Hiro Hasegawa, Venture Partner of Future Food Fund.

Sustainability as a long-term operating strategy

Beyond software and logistics, GrubMarket has invested heavily in sustainability through its Sustainable California initiative, launched in 2023.

The program focuses on support for organic farming, reforestation, and access to technology for farmers. In 2025, the company partnered with One Tree Planted to plant more than 100,000 trees in the Sierra Nevada region. GrubMarket also provided California farmers with free access to its AI software for the year and continued its sponsorship of socially disadvantaged farmers working through organic certification with CCOF.

These efforts align with a broader push to stabilize a supply chain under pressure from climate shifts, labor shortages, and rising costs.

What this round signals

The Series H funding gives GrubMarket fresh capital to invest in people, financial systems, technology, and future acquisitions. Xu framed the goal clearly.

“This Series H funding will turbocharge our AI software and business growth, and extend our eCommerce reach globally. We will increase our investment in people, financial infrastructure, technology, and acquisitions. Above all, we will continue to operate a self-sustaining business as the foundation of this company.”

At a time when many late-stage startups are trimming ambitions, GrubMarket is pressing forward with measured confidence. The company’s bet is simple: food distribution still runs on outdated systems, and AI-backed automation can reshape it at scale.