Local Grocery Delivery Service Raises $6M
MilkRun, a subscription service that delivers weekly grocery staples sourced directly from small local farms, has raised $6 million in a Series A fundraising round led by Spark Capital, with participation from existing investors Revolution’s Rise of the Rest Seed Fund, Social Impact Capital and Congruent VC. The company grew fifteen-fold in 2020, expanding its services from Portland, Ore., to Seattle and Austin, Texas. As it moves into new markets, MilkRun aims to create stronger, more sustainable local food systems by partnering with small farmers.
“We’ve doubled down on MilkRun because the company is reimagining a new supply chain infrastructure that can price small farmers — and their higher-quality/higher integrity food products — back into a market that otherwise abandoned them a long time ago,” explained Anna Mason, managing partner at Revolution’s Rise of the Rest Seed Fund, which has offices in Washington, D.C., and San Francisco. “As a result, Milkrun is able to literally and figuratively deliver for the 2021 conscious consumer who is rethinking where, how and why they shop for food.”
The funding round will help MilkRun create a more equitable and profitable system where small farms participate in a meaningful way. According to the company, if more people used MilkRun for a small weekly delivery of eggs or dairy, rather than buying these items from a large-scale grocer, local farmers would garner millions of dollars annually.
“Our mission at MilkRun is making it easy for every home in America to buy even just their eggs from a local farmer,” said Julia Niiro, CEO and founder of Austin-based MilkRun, which originally launched in Portland in 2018. “That’s because we believe changing the world begins one neighborhood — and one egg — at a time.”
“MilkRun has created a modern, local, and sustainable way for everyday people to access their local farms, supporting local food systems while increasing the resiliency of our food system,” noted Abe Yokell, managing partner at Oakland, Calif.-based Congruent VC. “We believe Julia’s vision of enabling local farm marketplaces across the country is a key component to creating a sustainable food system.”
MilkRun offers a recurring subscription with no minimum order or subscription fees, and free, contactless delivery. Providing full transparency from farm to plate, the brand shares detailed stories from farmers, fisherfolks, bakers, butchers and producers, along with simple chef-developed recipes using the weekly featured ingredients. According to the company, 50% of every dollar consumers spend with MilkRun goes to farmers, compared with 10% at big box grocers, resulting in strong, resilient local food economies.
