Imperfect Foods

What Imperfect Foods does

Imperfect Foods, Inc. is a direct-to-consumer grocery delivery subscription service that sources imperfect-appearance, surplus, near-best-by-date, and excess-inventory food from farmers and producers, then delivers these items to U.S. consumers at discounts reportedly ranging from 11% to 56% off retail. Founded in 2015 and headquartered in Clackamas, Oregon, the company operates an e-commerce platform accessible via web and mobile applications (iOS and Android), with over 1,000 SKUs spanning produce, meat, seafood, dairy, bakery, snacks, pantry, deli, wine, coffee, and tea. The company's core offering is a Grocery Subscription with pre-populated carts at $35-$45+ per order, complemented by a Flex Plan for manual ordering, an Imperfect+ premium membership, a Misfits Perks loyalty points program, a referral program, gift cards, and a Wine & Alcohol delivery service. The company does not operate physical retail storefronts or third-party reseller networks, instead relying on nationwide direct delivery with geographic exclusions in 10 states.

The business model is built on a cost advantage derived from sourcing food that would otherwise be wasted — a supply stream that enables gross margins exceeding 40%, roughly double traditional supermarket margins of around 20%. Distribution leverages over 500,000 square feet of combined distribution space following the late-2022 all-stock acquisition by Misfits Market, Inc., under which Imperfect Foods now operates as a subsidiary while retaining its brand and B Corp certification (achieved 2021). The company has rescued over 145 million pounds of food since founding and operates the only nationwide grocery delivery service offering a free Packaging Return Program, having collected over 10 million pounds of plastic packaging for reuse and recycling. Imperfect Foods has set a net-zero carbon target by 2030, a decade ahead of major retailers.

Go-to-market is product-led and subscription-centric: a free signup quiz, pre-populated weekly carts, skip/cancel-anytime flexibility, and a referral program ($10 credit for both referrer and new customer) drive low-friction acquisition and retention. Marketing is multi-channel — blog content, organic social (Instagram, Facebook, TikTok, Twitter, Pinterest), email/SMS, app stores, and significant earned media coverage (Bloomberg, NYT, CNBC, The New Yorker, GMA, TechCrunch). Customer segments are horizontally segmented, targeting environmentally conscious consumers, individual/household grocery shoppers, and budget-conscious shoppers who accept imperfect appearance in exchange for savings.

Name

Imperfect Foods

Legal name

Imperfect Foods, Inc.

Website

https://imperfectfoods.com

Company type

Private

Founded year

2015

Operating status

Acquired

Headcount range

1,001–5,000 employees

Short description

Imperfect Foods is a direct-to-consumer grocery delivery subscription service that sells imperfect, surplus, and near-expiration food items at discounts, serving environmentally conscious U.S. consumers nationwide. It operates as a subsidiary of Misfits Market following a 2022 acquisition.

Ownership category

akta.pro rank

Product category

Online Grocery Delivery

NAICS

All Other Specialty Food Retailers (445298)

SIC

Retail-Food Stores (5400)

akta.pro primary industry

Fresh Food Subscription/CSA & Produce Box Retail (CRAHAHAG)

Keywords

• Online grocery delivery
• Imperfect produce sourcing
• Food waste reduction
• Subscription grocery boxes
• Direct-to-consumer groceries

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Digital Commerce or Content

Cost components

Supply Chain, Operations, Personnel, Marketing or Sales, Technology or R&D

Revenue model

1. Grocery Subscription (Grocery Plan): Core subscription service where customers receive pre-populated carts with imperfect produce, pantry items, and other groceries. Customers can customize their orders and have items delivered weekly or bi-weekly. Revenue is generated through recurring order charges based on plan ranges ($35-$45+ per order) plus applicable taxes, shipping fees, and operational fees.
2. Flex Plan: Flexible shopping option for customers who have cancelled their Grocery Subscription or are new customers. Customers manually build their cart during shopping windows with no auto-population. Revenue is generated per transaction when customers meet order minimums.
3. Imperfect+ Membership: Premium membership program offering exclusive benefits such as free or discounted shipping. Billed on a recurring basis with automatic renewal at the start of each billing cycle. Includes free trial and promotional subscription options.
4. Cold-Pack Orders: Separate minimum requirements ($30) for perishable products requiring refrigerated packaging. Additional Cold-Pack Fee may apply for orders below the minimum threshold.
5. Referral Program: Customers earn referral credits ($10) when new customers use their referral code and place qualifying orders. New customers receive $10 discount on their first order.
6. Gift Cards: Gift cards sold in denominations between $10 and $250. Purchasers receive a unique code to forward to recipients who can add the balance to their account.
7. Discount/Financial Incentive Programs: Various discount programs in exchange for personal information (email, phone) including promotional offers and loyalty benefits.
8. Misfits Perks Loyalty Program: Loyalty points program automatically enrolled upon account creation. Customers earn points on purchases (2 points per $1 for Grocery Subscription, 1 point per $1 for Flex Plan) and redeem for perks including grocery items and order discounts.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels6 records

Core offering

Imperfect Foods is a subscription-based online grocery delivery service that sources cosmetically imperfect, surplus, and "ugly" produce, along with pantry and grocery staples, directly from farmers and producers, then packs and ships these items to consumers' homes at prices typically below conventional grocery retail. The platform allows customers to customize weekly boxes and recurring orders while supporting the company's mission of reducing food waste.

Product overview

Imperfect Foods operates as a grocery delivery subscription service focused on reducing food waste by selling imperfect, surplus, and near-best-by-date food items at discounted prices. The core offering consists of the Grocery Subscription service, where customers receive weekly deliveries of 1,000+ items (produce, meat, seafood, dairy, bakery, snacks, pantry, deli, wine, coffee & tea). The company complements this with the Flex Plan for manual ordering, Imperfect+ premium membership for enhanced benefits, Misfits Perks loyalty program for points-based rewards, a Referral Program for customer acquisition, Gift Cards for gifting, Wine & Alcohol delivery through licensed third-party partners, and a Packaging Return Program for sustainability. The company was acquired by Misfits Market in late 2022.

Differentiator

Problem solved

Functional benefit

Products and services

• Imperfect Foods Subscription Box A customizable weekly or recurring subscription grocery box of cosmetically imperfect and surplus produce, pantry staples, and grocery items shipped directly to U.S. households at prices below conventional grocery retail. Targeted at sustainability- and value-conscious household shoppers.
• Imperfect Foods Online Grocery Store The Imperfect Foods e-commerce website and mobile app, where customers can shop individual produce, pantry, and grocery items on a one-time or recurring basis, supplementing the subscription box with add-on products.
• Imperfect Foods Mobile App iOS and Android mobile applications that allow customers to manage recurring subscriptions, customize weekly grocery boxes, browse the assortment of imperfect and surplus produce and grocery items, and place orders from Imperfect Foods.
• Reusable Packaging Return Program A packaging return and reverse logistics service allowing customers to return reusable delivery packaging from Imperfect Foods shipments, which the company collects and reuses to reduce single-use packaging waste in its grocery delivery operations.

Quantifiable outcome

• 139 million lbs of food saved by customers
• +3 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core and minor.

• Misfits MarketcoreStrategic or Co-development Partner · 1 October 2022Misfits Market acquired Imperfect Foods in late 2022 through an all-stock transaction. Imperfect Foods became part of the Misfits Market family of companies, with shared infrastructure including over 500,000 square feet of distribution space. Both brands continue operating while benefiting from combined operations, logistics, and customer base.
• GoPuffminorStrategic or Co-development PartnerFollowing the acquisition of Imperfect Foods and expansion of distribution infrastructure, Misfits Market (including Imperfect Foods) began offering fulfillment services for third-party brands including GoPuff, enabling high-margin fulfillment revenue.
• Covilli Brand ProduceminorStrategic or Co-development PartnerCovilli Brand Produce is highlighted as a farming partner working with Imperfect Foods to creatively prevent waste and make family farming more sustainable by purchasing imperfect produce that would otherwise go unsold.

Scale indicators7 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Misfits Market: Direct-to-consumer grocery subscription service rescuing imperfect and surplus food at discounted prices. Now the parent company of Imperfect Foods following the late-2022 all-stock acquisition, operating an identical model with overlapping product categories and shared distribution infrastructure.
• Hungry Harvest: Subscription-based produce delivery service that sources 'ugly' and surplus produce from farmers and delivers to households on the East Coast. Closest pure-play peer with the same imperfect-produce subscription model, similar value proposition, and overlapping target customer (conscious consumers).
• Farmbox Direct: Subscription produce delivery service focused on organic and seasonal produce from small US farms. Directly comparable DTC subscription model with emphasis on sustainable sourcing, though smaller in scale and with narrower geographic coverage than Imperfect Foods.
• Daily Harvest: DTC subscription food brand offering pre-portioned, plant-based frozen smoothies, bowls, and snacks delivered nationwide. Comparable on DTC subscription mechanics, recurring revenue model, and mission-driven branding, though narrower product range and frozen-only focus.
• HelloFresh: Largest global DTC meal kit subscription company with US operations. Comparable on subscription-driven home food delivery model, though focused on recipes + pre-portioned ingredients rather than surplus grocery rescue. Closest public-market comparable for the subscription economics.
• Blue Apron: DTC meal kit subscription company delivering pre-portioned recipes and ingredients to households. Comparable subscription cadence, customer onboarding mechanics (preference quiz), and skip/cancel flexibility, though product offering is meal kits rather than grocery subscriptions.
• Sun Basket: DTC meal kit and prepared meal delivery service with subscription model. Comparable on subscription-driven home food delivery and emphasis on sustainable/healthy positioning, though product is recipe-based kits rather than surplus grocery rescue.
• Thistle: DTC plant-based meal subscription service delivering chef-prepared, ready-to-eat meals nationwide. Comparable on subscription model, mission-driven branding (sustainable food systems), and direct-to-consumer home delivery, though narrower geographic coverage.

Broad incumbents

• FreshDirect: Established online grocer delivering fresh groceries to customers in major US metros (Northeast, Mid-Atlantic, Washington DC). Comparable product categories and DTC grocery delivery model, but operates as a broader grocery retailer rather than surplus/imperfect-produce specialist.
• Amazon Fresh: Amazon's online grocery delivery service offering broad assortment including perishables with Prime membership benefits. Largest direct competitive threat via scale, free delivery economics, and national reach into all 50 states where Imperfect Foods is restricted.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xtwitter.com/imperfectfoods
• YouTubeyoutube.com/channel/UCt7R106mKdBqs3pQTH Uk9ww
• Facebookfacebook.com/imperfectfoods
• LinkedInlinkedin.com/company/imperfect-foods
• Instagraminstagram.com/imperfectfoods
• TikToktiktok.com/@imperfectfoods
• Pinterestpinterest.com/imperfectfoods

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds10 records

Investors18 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Imperfect Foods