Grubmarket Expansion Of Silicon Valley Fresh Electricity Supplier

Since the end of 3 this year, COVID-19, which swept across the United States, has issued the "home ownership order" in the states of the United States, asking people to minimize the number of times they go out. Keeping the demand for social distance increases the demand for fresh delivery.

Under the shadow of the epidemic, GrubMarket, the Silicon Valley's fresh electricity supplier, has seen its fastest growth since its establishment, with orders surging nearly 10 times in two months. At the same time, this start-up also accelerated the "buy and buy" pace, and completed four acquisition transactions in two months.

In twenty-first Century, the economic report learned from GrubMarket investors that GrubMarket has completed the acquisition of Growers Produce and Cali Fresh Produce at the end of May, and has become a major supplier of cherry in California. It is also one of the largest wholesalers and retailers in San Francisco.

"We very much hope that we can absorb some fresh enterprises with 20 or even 40 years of experience in the region to help us grow. These companies often have strong ties with local consumers and consumers. " GrubMarket CEO and founder Xu Minyi talked about the reasons for the takeover.

"Buy and buy" during the epidemic period

GrubMarket emerged early in the 2015 spring training camp of Silicon Valley incubator Y Combinator.

"Our model is very disruptive." Xu Minyi, standing on the YC roadshow stage, told the VC people to destroy the middlemen and give the difference to farmers and consumers.

GrubMarket's business model is "farm to table": by simplifying the supply chain, farmers can avoid lowering profit margins in the wholesale and distribution process, and consumers can get quality food at a lower price.

During the roadshow, GrubMarket just expanded its services to eight cities in four months, with annual sales exceeding $6 million and average monthly growth rate of 68%. Xu Minyi told investors to make the 2 edition of Whole Foods.

Today, GrubMarket expects to sell hundreds of millions of dollars in the whole year. The company also has an independently developed WholesaleWare platform that integrates the functions of financial management, inventory and price management, and customer relationship management (CRM), so as to effectively enhance the work and operation efficiency of fresh wholesalers.

Since 2019, GrubMarket has completed many mergers and acquisitions, including regional fresh electricity providers, fresh wholesalers and related software platforms.

"GrubMarket is the only scientific and technological fresh distribution company in the us that is profitable and has a large amount of cash. This is a good time to buy at a low price. Now is also the best time for To C business. The acquisition has complemented the SKU of the company. Combined with the supplement of technology and channel, the company's revenue is showing a geometric growth. GrubMarket's investor Celt, Asia's managing partner, Chen Jie told the twenty-first Century economic report.

Silicon Valley's new China gene

At the beginning of his career, Xu Minyi had a wish to make a large new generation of American companies for Chinese people, as a Chinese venture enterprise to list the Fortune 500 list.

He believes that the reason why GrubMarket's founding team is competent for the job is that Chinese entrepreneurs generally have a good educational background and have experienced in Silicon Valley technology company. Chinese people are diligent and have a good sense of financial management and operation management, and can operate at a limited cost and operate efficiently.

It is important for a generation of Chinese immigrants to have a sense of urgency and hunger. They have the desire to make great companies in the United States, and are willing to work harder than usual.

"Chinese is a diligent version of the Jews and the most business people in the world," Xu Minyi said. "The only criterion for my success in business is whether GrubMarket can eventually become an e-commerce company with annual sales of over $one hundred billion."

Reporters combing past investment and financing information found that GrubMarket venture has been supported by Chinese and American investors. Its shareholders list includes Celt venture capital, WI Harper Group, YAHOO founder Yang Zhiyuan, GGV Jiyuan capital, Fosun Group, Y Combinator, Fusion Fund and so on.

Today, the company is already a star project for Y Combinator, a Silicon Valley incubator. According to market valuation as of October 2019, GrubMarket ranked the top 80 among over 2000 YC alumni enterprises. Chen Jie disclosed that GrubMarket will complete the D round of financing in June, when the valuation will also rise sharply.

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