E4: The online grocery store that just raised $16.5M to save the world’s ugly food - Misfits Market

Spotify Stitcher Overcast

Fun Fact

Since launching last year, Misfits has rescued over 5 million pounds of produce that would have otherwise gone to waste.

FOUNDERS

Abhi Ramesh

FLAGSHIP PRODUCT

Online grocery subscription

LAUNCHED

2018

Latest Funding

$16.5M from Greenoaks Capital

HQ

Philly

20190425-MISFITS-STILLS0344_VS_R2.jpg

The Problem

Billions of pounds of fresh and delicious food is tossed each year because grocery stores only want "perfect" foods on their shelves. “Onions that are too small, potatoes that are shaped like your favorite celebrity, and carrots that fell in love and got twisted together.” Global food waste generates 3.3 billion tons of carbon dioxide annually, making it one of the single biggest contributors to planet-harming emissions.

The Solution

Misfits buys the “imperfect” fruit and vegetables from hundreds of farms across the country and sells them direct-to-consumers at 50% off, saving us money and helping us save the world.

“It's a subscription box of sometimes funny-looking, always delicious produce, designed to break the cycle of food waste. Think of us like an online grocery store, except one that specializes in rescuing food that is unnecessarily thrown away.”

Episode Brief

Abhi Ramesh, Founder and CEO of Misfits Market, joins Peter on this week’s episode to discuss:

  • The scale of the food waste and accessibility problems

  • How Abhi discovered the problem and his “eureka moment”

  • Talking to hundreds of farms while building V1

  • What goes on behind the scenes to enable the end-to-end consumer experience

  • Running a massive warehouse and distribution center

  • Hiring “Misfits” from the community

  • How Misfits has convinced 1000s of consumers to purchase “food waste”

  • Broader market shifts around sustainability and how important brand is in building climate solutions

  •  What’s next from here

  • The moonshot and potential sum total impact

  • Lightning Round questions:

    • If you weren’t working on Misfits, where would you be investing your time experimenting?

    • What’s your favorite interview question and why? (in context of hiring)

    • If you could invest in one other company in the industry, who would it be and why?

    • What’s something you believe to be true that most people don’t agree with you on?

    • Who has had the greatest impact on your learning and why?

Credits

This episode is brought to you by Bite Toothpaste Bits, the only all-natural, plastic-free way to replace the paste we’ve used our whole life. If you’re looking to cut single-use plastic from your life, go to BiteToothPasteBits.com and use code INGOODHANDS for $5 off their flagship 4-month subscription (incl. free shipping)!

Host

Peter Levin

PRODUCTION

Dan Mahoney and Lucas Arndt

Music

Ed Arndt

DESIGN

Javier Quinonez