Misfits Market Goes Beyond Groceries, Acquires The Rounds to Stock Your Entire Sustainable Home

Misfits Market, the popular online platform dedicated to rescuing “imperfect” groceries and minimizing food waste, is significantly expanding its pantry. The company announced Friday its acquisition of The Rounds, a sustainable household restocking service, signaling a strategic move to offer customers a broader range of eco-conscious products.

This deal will see Misfits Market integrate over 250 items from The Rounds’ existing inventory. This expansion means customers will soon find more than just oddly shaped fruits and vegetables in their Misfits Market boxes; they’ll also be able to stock up on essential household items, including cleaning supplies and paper products.

To facilitate a smooth transition for The Rounds’ current subscribers, Misfits Market is rolling out an attractive welcome package: a $30 credit and a complimentary one-year subscription to its new Misfits+ membership program. This premium tier offers exclusive weekly deals and coveted free shipping.

While the financial terms of the acquisition remain undisclosed, and decisions regarding potential layoffs are still being finalized, the move is a significant step for Misfits Market. The Rounds had previously raised a substantial $66 million in funding from notable investors like Andrew Chen (Andreessen Horowitz), Annie Kadavy (Redpoint Ventures), Construct Capital, and First Round Capital.

Beyond product diversification, this acquisition allows Misfits Market to leverage The Rounds’ established partnerships with major multifamily operators, including AvalonBay, Greystar, and Related. This could open up new channels and a wider customer base for Misfits Market’s growing range of offerings.

This is Misfits Market’s second major acquisition, following its 2022 purchase of Imperfect Foods, another key player in the “ugly produce” space. According to Misfits Market CEO Abhi Ramesh, the company isn’t stopping here. “This market is ripe for consolidation, and we are constantly looking at deals,” Ramesh told TechCrunch, highlighting a clear M&A strategy aimed at strengthening its foothold in the booming sustainability sector, especially as consumer awareness around food waste continues to rise.

Founded in 2018, Misfits Market built its brand by offering produce that might otherwise be discarded by farmers and suppliers due to cosmetic imperfections like size, shape, or discoloration. The Rounds, established in 2019, carved its niche by offering a sustainable grocery and home essentials delivery service that emphasizes refilling products in reusable packaging.

The impact of these companies on waste reduction is notable. Misfits Market reports having rescued over 238 million pounds of food to date. The Rounds, in its efforts, has saved over 1 million pounds of packaging waste and estimates it has the potential to save an average of 500,000 pounds of food each week through its model.

This acquisition clearly positions Misfits Market to become a more comprehensive solution for consumers seeking to reduce their environmental impact across a wider spectrum of their household needs.