Farmstead, a new AI-powered digital micro-grocer that curates and delivers fresh, local foods from farm-to-fridge in 60 minutes, has secured an additional USD2 million capital infusion, led by Resolute Ventures and Social Capital, with additional participation from SV Angel and Y Combinator.
This latest round brings Farmstead’s total seed funding to USD4.8 million to date.
Farmstead will use the new funds to scale operations of its rapidly growing AI grocery sourcing and delivery service, continue building out its core AI technology, accelerate hiring, and expand its service well beyond the Bay Area.
“As Farmstead continues to grow at breakneck speed, this latest round of seed funding will allow us to scale our successful digital grocer model and expand our AI technology to reinvent the act of putting food in the fridge for everyone,” says Farmstead CEO and co-founder Pradeep Elankumaran. “At the same time, our AI has enabled us to reduce food waste and boost margins, creating a new paradigm for the traditionally wasteful 1.4 trillion food industry.”
Farmstead’s AI platform knows what customers want to eat, when, and exactly how much to source from local farms and purveyors, delivering to customers in 60 minutes flat using AI-optimised routes.
Known for its bid to take on Amazon in the USD100 billion online grocery delivery wars, Farmstead’s self-learning AI models use historical sales and operations data to accurately predict consumer tastes, exactly how much food will be sold each day, and how many perishable products to keep in stock, while maintaining high levels of availability for customers.
“Farmstead’s model is proving that it’s possible to disrupt a trillion dollar industry and improve margins with AI, while doing right by consumers, food sector businesses and the planet,” says Resolute Ventures co-founder Mike Hirshland. “We are thrilled to help Farmstead advance to this next stage of their growth.”
