GrubMarket
“Can a vertical food-supply-chain platform consolidate a $1T industry by stacking ERP, AI, and embedded payments faster than incumbents digitize?”
Founded2014
HQSan Francisco, CA
FoundersMike Xu
Total raised$569.95M
Latest roundSeries G, 2025
Valuation$3.5B+ post-money (2025)
IndustryVertical SaaS / Food Supply Chain
The story
GrubMarket started in 2014 as a consumer-facing direct-from-farm grocery delivery service. By 2018-2020 it had pivoted into a B2B food supply chain platform, supplying restaurants, grocers, and meal-kit companies while quietly building software (WholesaleWare ERP, Orders IO, Farmigo). In 2023 it added GrubPay — embedded payments for food wholesalers — and in 2024 acquired Butter to deepen AI + payments capabilities. The current thesis is enterprise AI + integrated commerce + payments for the $1T US food distribution industry, with 90+ acquisitions consolidating a fragmented vertical.
Product timeline
2014
Founded by Mike Xu in San Francisco as a B2C platform for farm-fresh food delivery· founding
2018
Series D led by GGV; expansion into B2B food supply chain· pivot
2020
$60M raise during COVID food delivery surge; preparing for IPO· funding
2021
$120M Series E at $1B+ pre-money; positioned as food supply chain platform· funding
2023
Launched GrubPay — integrated payment platform for food wholesalers and distributors (ACH, credit card)· payments
2024
Acquired Butter, AI-powered food wholesale ERP & payments stack· acquisition
2025
$50M Series G at $3.5B+ valuation; AI-first positioning for $1T food distribution market· funding
The stack
2 layers disclosed in GrubMarket’s embedded-finance stack
Payments / PSP
GrubPay (self-operated)
Money movement
in the full report
Accounting gap: none
1 more provider across 1 layer, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.