FreshDirect, a NYC-based online food retailer, closed a $189m funding round.
The round was led by J.P. Morgan Asset Management on behalf of its PEG Digital Growth Fund II L.P., returning investor W Capital and other investors advised by J.P. Morgan Asset Management, including the AARP Innovation Fund. In conjunction with the investment, Larry Unrein, Head of J.P. Morgan Asset Management’s Private Equity Group, and Ashmi Mehrotra, Managing Director, joined FreshDirect’s board of directors.
The company intends to use the funds to accelerate expansion into new markets, increase capacity with new manufacturing and distribution facilities, and launch new businesses.
Launched in 2002 by Jason Ackerman, CEO, FreshDirect sources meat, fish, produce and specialty items through direct relationships with suppliers, growers and farmers and delivers them directly to customers throughout five states, including the New York City and Philadelphia metropolitan areas.
In 2016, the company has launched FoodKick, an on-demand business that caters to the needs of urban-dwellers with a selection of food, alcohol and essentials – all delivered within an hour.