Misfits Markets Marks Second Acquisition With The Rounds

Waste-reducing online grocery platform Misfits Market announced on Friday it has acquired New York-based circular grocery and household products platform The Rounds.

The news comes three years after Misfits scooped up Imperfect Foods. Terms of the deal were not disclosed.

The Rounds, which operated in urban areas including Philadelphia, Miami, D.C. and Atlanta, sold grocery items in returnable, infinitely recyclable packaging as well as groceries from brands using recyclable or plastic-free packaging including Purely Elizabeth and Heyday Canning Co.; However, the majority of the items offered on the platform were The Rounds’ own bulk private label offerings.

Misfits will take on over 250 of these items from The Rounds’ inventory, allowing the company to expand into new categories such as cleaning supplies and paper goods. As of today, all orders from The Rounds will be fulfilled by Misfits Market. The Rounds customers will be given a complimentary, year-long Misfits+ membership as well as a $30 credit as part of the transition.

“Both The Rounds and Misfits Market have pioneered innovative solutions to make online grocery more sustainable, including reusable packaging, using eco-friendly materials, right-sizing other necessary packaging, and efficient last mile delivery and reverse logistics capabilities. These efforts have significantly reduced packaging waste and emissions,” a notice on The Rounds’ site reads.

The Rounds was founded by Alex Torrey in 2019 and has raised a total of $66 million in capital to-date, including a $24 million Series B round in August 2024 led by Moderne Ventures. At the time of its last investment, the company said it would be working to scale its “AI-powered” service and launch new markets.

The company, which primarily fulfilled its weekly order “restocks” direct-to-consumer via bike messengers in urban areas, also opened a new facility in the Washington, D.C., area in the past three years and expanded into cold chain operations. That infrastructure is likely a point of interest for Misfits, which expanded its services into third-party fulfillment for other grocers in 2024.