Online food retailer FreshDirect has closed a $189m investment round led by J.P. Morgan Asset Management on behalf of its PEG Digital Growth Fund II, existing investor W Capital and other investors advised by J.P. Morgan Asset Management, including the AARP Innovation Fund.
FreshDirect co-founder and CEO Jason Ackerman said: “The funding will fuel expansion into new markets, increase capacity with new manufacturing and distribution facilities, and launch new businesses that meet today’s consumers’ needs as their preferences and buying habits evolve.”
FreshDirect also announced that J.P. Morgan Asset Management’s Private Equity Group head Larry Unrein and managing director Ashmi Mehrotra joined the company’s board of directors.
Unrein said: “As demand for fresh ingredients delivered to your door continues to rise, high-quality food, produce and packaged goods providers are drawing significant attention from the investment community.
“FreshDirect is one of the first to connect its customers with farmers and artisans at the click of a button. The company is also expanding its reach through the new mobile, on-demand offering FoodKick. By meeting the demands of the modern shopper on these two fronts, FreshDirect remains a forward-thinking leader in this growing market segment.”
The retailer generates more than $600m in annual revenues.
Earlier this year, FreshDirect bolstered its portfolio with the launch of FoodKick, an on-demand, mobile-first delivery business. It was launched in Brooklyn and Queens, New York, US, and will soon expand its services to Manhattan.