New York-based groceries retailer, FreshDirect, raised $189 million in funding from JP Morgan Asset Management and seeks to expand its geographic footprint.
Launched in 2002, FreshDirect is an online food grocery services that delivers fresh meat, produce, and other speciality items in the New York and Philadelphia areas. The company recently introduced the FoodKick program in Brooklyn which promises customers that it will deliver food, alcohol and other products in less than an hour. This new round of funding will help FreshDirect expand its capacity and reach.
JP Morgan Asset Management led the fundraising and other participants included existing investor W Capital and AARP Innovation Fund. Larry Unrein and Ashmi Mehrotra, head and managing director of JP Morgan Asset Management’s private equity group will join FreshDirect’s board of directors as well.
CEO and co-founder Jason Ackerman talked about the plans to move into new territory and said, “We’ve always felt like a majority of the competition is fought at the local level.” In the recent years, FreshDirect has faced competition from various meal kit companies like Plated and Blue Apron, as well as InstaCart, a delivery service that allows customers to order directly from their local supermarket. Ackerman said, however, that the influx of rivals would help make shopping for groceries online more widespread.