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Exclusive: Food overstock retailer Martie raising extension

A cardboard box is filled with organic and better-for-you food products.

Photo: Courtesy of Martie

Martie, a startup selling overstock of shelf-stable food products online, is raising a $3 million to $4 million extension, CEO Louise Fritjofsson tells Axios exclusively.

Why it matters: The company aims to save products from landfill and sell discounted healthier food so it can be accessed by lower-income families.

Catch up quick: Martie has already raised a total of $6.5 million via a pre-seed in 2021 and a seed in 2022.

By the numbers: Its revenue run rate is north of $10 million, it has grown 25% month over month since September, and it expects to grow revenue 8x this year compared to last, Fritjofsson says.

  • The extension should fund the company until it reaches profitability, which it is approaching this year, she says.

Zoom in: Martie can offer organic and natural food for 50% less than what is charged at a typical grocer.

  • And because the products are shelf stable and delivery time is flexible (between three and five days), it can operate profitably.

What's next: The company is expanding the number of SKUs it offers from 500 to 1,000.

  • It plans to add a second warehouse either on the East Coast or West Coast by the end of this year in addition to the one in Texas.
  • Martie is updating its app with entertainment, sweepstakes, and live shopping videos.
  • And it is launching a membership program that offers cash back and free shipping.

The big picture: Closeouts is a huge market, Fritjofsson says, pointing to the likes of T.J. Maxx.

State of play: Martie considers Hungryroot, DeliverLean, and food-as-medicine providers as competitors.

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