GrubMarket Raises $50M to Bring AI and Digital Innovation to Food Distribution
TECHNOLOGY
GrubMarket announces $50M Series H funding round for AI and eCommerce expansion.
The global food industry is experiencing a transformation. What was once a fragmented network of distributors and wholesalers is becoming a smart, connected ecosystem, and GrubMarket is leading the charge. The company announced today it has raised $50 million in Series H financing, reaching an impressive $4.5 billion valuation. This milestone reflects GrubMarket's evolution from innovative disruptor to essential industry infrastructure. The funding celebrates the company's remarkable scale, powered by groundbreaking AI technology launches and strategic acquisitions that are reshaping how food reaches consumers.
Beyond Enterprise Software
While most B2B food platforms focus on simple e-commerce, GrubMarket has spent the last year deploying specialized AI Agents designed to solve the industry’s most persistent frictions:
Inventory Management AI Agent: Launched in July 2025, this tool automates critical inventory workflows, ensuring less waste and higher margins for distributors.
Reporting AI Agent: Debuted in September 2025, it provides automated, schedule-based business analysis that traditional ERP systems simply can't match.
Monitoring AI Agent: A recently announced tool that detects and alerts of critical business issues before they impact the bottom line.
Scale Through Strategic Acquisition
The Series H funding arrives on the heels of major structural expansions. In 2025 alone, GrubMarket acquired Coast Citrus (its largest acquisition to date) and Delta Fresh Produce, while integrating Procurant, a SaaS platform that facilitates $5.5 billion in GMV annually.
“This funding will turbocharge our AI software and business growth, and extend our eCommerce reach globally,” said Mike Xu, CEO of GrubMarket. “We saw this as an opportunity to align our company's valuation with the new level of scale and strength that we have achieved.”
Reinvigorating the Ecosystem
GrubMarket isn't just focused on the digital layer; they are investing in the physical foundation of the industry. Through the Sustainable California initiative, the company has sponsored the planting of over 100,000 trees in the Sierra Nevada region and provided free AI-powered software to California farmers. This "Holistic Sustainability" ensures that the agricultural ecosystem remains resilient enough to support the digital supply chain of the future.
The "Supply Chain Moat"
GrubMarket's Series H funding reveals an important shift in the food industry: data and visibility now matter as much as the products themselves. For food and agriculture companies, this means supply chain transparency has become a strategic asset. By using AI to track products and manage inventory in one integrated system, GrubMarket shows that eliminating inefficiencies and information gaps creates real competitive advantage. The companies thriving today are those making their supply chains smarter and more transparent.