October investment roundup: Retail is booming

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Each month, New Hope Network rounds up must-see investments in the natural products industry. Through Capital Nutrition Network, New Hope editors follow investment news to see what financial moves could significantly influence the industry and identify trends with financial backing. Check back each month to see the latest investments that have caught our attention.

Kroger Co. and Albertsons Companies made big waves when they announced their intention to merge. The $24.6 billion deal combines the two largest supermarkets in the United States, which will no doubt have ripple effects across the entire food industry. Some brands claim that having a buyer for what will be the largest retailer will help streamline their processes and help them get known to more consumers. However, others worry that consolidations will mean less room for growth and competition. The proposed deal includes Kroger assuming approximately $4.7 billion of Albertsons’ net debt.

The proposed merger between Kroger and Albertsons wasn’t the only financial news in the retail world. Here are some others worthy of attention.

Instacart acquires Eversight

Eversight is an AI-powered pricing and promotions platform for CPG brands and retailers. The customizable platform allows CPGs and retailers to create and scale data-driven pricing and promotions. Instacart’s investment in this pricing and promotions expertise will make it easier for more customers to save on groceries.

Motatos raises 38 million euros in Series D

Swedish startup Motatos has announced a €38 million Series D funding round, bringing its total funding to €130 million. Motatos is a discount grocery start-up in Sweden, Finland, Denmark, UK and Germany. Motatos focuses on selling household items with long shelf life, such as pantry items, beverages, personal care products and pet food. All products are sourced from excess inventory from large producers at a reduced price. By selling surplus food, the company helps keep food waste out of landfills. In 2021, sales of Motatos were 68 million euros and are expected to reach 100 million euros this year. This Series D round was led by Swedish bank SEB with UK-based VC Exor Capital.

Misfits Market acquires Imperfect Foods

Misfits Market announced in September the acquisition of another online grocery platform, Imperfect Foods. The two companies collect deformed or discolored products and redistribute them via online sales to reduce food waste. TechCrunch values ​​Misfits Market at $1 billion, while AgFunderNews.com values ​​Imperfect Foods at $700 million. Terms of the deal were not released, but AgFunder News reported that it was an all-stock transaction. Misfits Market CEO Abhi Ramesh told Bloomberg that the new company will likely go public. In a released statement, a Misfits Market spokeswoman said combing through online grocery platforms would drive sales to $1 billion and make the business profitable by 2024.

The Rounds Raises $38M in Series A Funding

The sustainable home replenishment service, The Rounds, is an online shopping and delivery service similar to Amazon Prime or Instacart in its speed, but with less environmental impact. Instead of disposable packaging, The Rounds uses a refill system when dropping off household items. It also collects empty containers from customers to refill for next time. Redpoint Ventures and Andreessen Horowitz led the startup’s latest investment round.

Credo Beauty acquires a pioneering clean beauty brand

Credo Beauty, a pioneering clean beauty retailer, announced that it recently acquired Boston-based skincare and beauty brand Follain. Credo will absorb Follain’s online retail and storefront business. Follain Founder and CEO Tara Foley will support the transition as an advisor and then begin advising the targeted beauty and CPG brands.

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