41. GrubMarket

Founder: Mike Xu (CEO)
Launched: 2014
Headquarters: San Francisco
Funding: $550 million
Valuation: $2.2 billion
Key technologies: Cloud computing
Industry: Food, logistics
Previous appearances on Disruptor 50 List: 0

Despite the scale of industrial farming, the produce supply chain, in which wholesalers and distributors get their produce to customers via grocers, local markets or restaurants, has remained fragmented.

GrubMarket is seeking to change that by introducing technology to create more efficiencies in order to save money, time, and fuel, and eliminate food waste. The goal, according to CEO Mike Xu, is to digitally transform the American food supply chain industry, while reaching $100 billion in sales — it is nowhere near that today — along the way.

The company works directly with farmers and growers, as well as buyers, with a suite of software solutions that include inventory, warehouse management, grower accounting and mobile apps for food wholesalers and distributors.

GrubMarket is now one of the largest suppliers of South American produce in the U.S. Last year, it was in the top 10% of suppliers for meat, peppers, cucumbers, squash, tomatoes and oranges in the country. It supplies 5% of all grapes and is the country's largest distributor of South American cherries. It connects farmers with consumers — home delivery is available in certain markets — as well as giants like Walmart, Costco, Albertsons, Kroger, Whole Foods, and thousands of restaurants nationwide. 

Much of the company's growth has come through acquisitions. GrubMarket made more than 60 acquisitions in the last four years and acquired over a dozen firms in 2022 alone. While many deals have been focused on the food industry, the company has started making inroads into fintech as well. Last year, the company acquired IOT Pay, a fintech that provides payments services. GrubMarket now uses the technology to offer its own payment solution to customers. 

Since setting out in 2014, the company has grown to operate in all 50 states, as well as South America, India, South Africa and Spain. It recently announced that it expanded its supply of fresh produce to Ukraine and Romania, and opened a new office in Egypt. Last year, it surpassed the $1 billion mark in revenue and improved both EBITDA and net profitability. It also raised $120 million from investors, including General Mills' venture capital arm in September.