GrubMarket raises $50M Series G at $3.5B valuation to expand AI-driven supply chain solutions

GrubMarket, a food tech startup and AI-driven supply chain management provider, has secured $50 million in a Series G round, pushing its valuation past $3.5 billion. The funding comes from Liberty Street Funds, 3Spoke Capital, ROC Venture Group, Portfolia, Pegasus Tech Ventures, Joseph Stone Capital, and other investors.

With a fresh round of capital and an expanding global footprint, GrubMarket is setting itself up for its next phase of growth—one that relies heavily on AI to streamline an industry long overdue for a digital overhaul.

Founded in 2014 by Mike Xu (CEO), GrubMarket operates in all 50 states and does business in over 70 countries, with plans to expand further. With AI reshaping nearly every industry, the company is betting big on automation and data-driven logistics to make food distribution more efficient and cost-effective.

The company has been on a rapid growth trajectory, surpassing $2 billion in revenue in 2024. Xu emphasized that the latest funding wasn’t out of necessity but an opportunity to align the company’s valuation with its scale, AI-driven innovations, and overall business strength.

GrubMarket CEO Mike Xu

“GrubMarket has experienced an incredible acceleration in growth over the last 12 months – our revenues surpassed $2 billion in 2024, and we became the largest private food technology company in the United States, while continuing to maintain a strong and healthy financial bottom line,” Xu said.

“As our business model is highly sustainable, this funding round was not a necessity, but rather an opportunity to align our valuation with the scale and strength of our business growth, our AI tech innovations, and the significant value we create for the industry.”

The company recently introduced GrubAssist AI, an enterprise AI software suite designed for the food supply chain. The system includes a Business Analyst AI assistant for business intelligence, an AI-powered ordering agent that processes offline orders from voicemails, PDFs, and emails, and a Cash Flow Analyst AI that predicts financial trends for wholesalers and distributors.

Beyond software, GrubMarket has been expanding its reach. It recently entered South Africa, acquired one of Texas’ largest food service companies, and took over Good Eggs, a struggling online grocery provider on the West Coast. The turnaround was swift—Good Eggs reached net profitability within two months after years of financial losses.

GrubMarket’s platform serves tens of thousands of customers, including grocery chains, restaurants, hotels, schools, government facilities, and farms. Xu and his team have positioned the company as the only enterprise AI solutions provider for the food supply chain, aiming to bring modern technology to an industry still lagging in digital adoption.

Its environmental initiative, Sustainable California, has been running since 2023. The program supports farmers, promotes organic agriculture, and invests in reforestation. As part of its 2025 efforts, the company plans to support wildfire recovery in Los Angeles by planting trees in partnership with non-profit organizations.

“GrubMarket has rapidly grown into a major food technology company by leveraging best-in-class AI-powered software solutions and strong operational discipline,” said Kevin Moss, President of The Private Shares Fund and Managing Director of Liberty Street Advisors. “The company’s growth and scale are supported by established business fundamentals and a commitment to sustainability, benefiting farmers in California and across the U.S.”

ROC Venture Group’s Aaron Stafford echoed the sentiment: “Ensuring access to nutritious food should be our foundation—because without it, nothing else truly matters.”