San Francisco-based food technology company GrubMarket has secured $50 million in a Series G funding round, elevating its valuation to over $3.5 billion at a time when well-performing tech companies with compelling AI business cases are attracting strong interest from investors.

Targeting a $1T industry: Founded in 2014 by CEO Mike Xu, GrubMarket operates as an online farmers market, connecting consumers across North America with local fresh produce suppliers. The company's mission is to digitally transform the American food supply chain industry, which is valued at approximately $1 trillion annually.

The AI factor: In 2024, GrubMarket's revenues surpassed $2 billion, solidifying its position as the largest private food technology company in the U.S., also expanded its operations to over 70 countries. The company's funding success comes amid a dynamic venture capital landscape. In 2024, global venture capital funding for AI companies exceeded $100 billion, marking an increase of over 80% from the previous year.

Automating the food supply chain: GrubMarket recently introduced GrubAssist AI, an enterprise AI software suite designed specifically for the food supply chain. This suite 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.

A crop of investors: The company's latest funding round saw participation from a slew of investors including, Liberty Street Funds, 3Spoke Capital, ROC Venture Group, Portfolia, Pegasus Tech Ventures, and Joseph Stone Capital. ​The newly raised capital is earmarked to enhance GrubMarket's AI capabilities and support its continued growth.