The Rounds, an inventory management platform that delivers recurring grocery and household essentials in reusable packaging, announced a $24 million Series B funding round led by Moderne Ventures, with participation from FJ Labs and existing investors, bringing its total funding to date to $66 million. The company will use the investment to scale its AI-powered service, strategically focusing on profitable growth in existing markets, expanding its team across machine learning, data science, and executive leadership, and launching new markets. The funding comes at a time of rapid progress towards market profitability. Since its Series A, The Rounds has posted 6X revenue growth, opened a state-of-the-art facility in Washington D.C., launched cold chain operations, and extended its closed-loop supply chain with local vendors.
“Sustainability has been at our core since day one. According to the EPA, more than 82 million tons of packaging waste is discarded every year and less than 10% is recycled. Waste is just bad design. The Rounds creates a better experience for our members that wastes less than the alternatives. To date, we’ve saved over 1 million pounds of packaging waste, proving sustainability does not have to come at the expense of convenience,” said Alex Torrey, Co-Founder and CEO of The Rounds. The company sources products locally, directly from producers, and in bulk, then refills in reusable packaging and delivers on a weekly schedule to members via its proprietary two-way last-mile logistics network. “By applying machine learning to provide smarter prediction on when everyday items in your home need to be refilled and sharing personalized product recommendations, The Rounds offers a better solution for managing your recurring essentials and we’re breaking the mold of quick commerce with a sustainable path to profitable long-term growth.”
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The Rounds recently launched new AI-enabled features giving its members greater flexibility to choose their own “Refill Day” and add products one time or have products managed on a recurring basis using the company’s “Psychic Home Manager” feature. The company also expanded its product selection with over a hundred new SKUs—including fresh produce, local goods, and household staples—and now provides more transparency around its sustainability benefits, with detailed information on product sourcing and a redesigned sustainability page. “We aim to make The Rounds the #1 go-to platform for all your essentials. Our goal is to continue to enhance member satisfaction with a service that provides smarter recommendations, is tailored to your schedule, and allows you to easily see the positive environmental impact of your purchasing decisions that reduce your waste at home and support local businesses in your community,” said Torrey.
As the company scales, it looks to strategically partner with multifamily property managers, which is why it opted to work with Moderne Ventures. “The Rounds is addressing a huge pain point for city dwellers by enabling them to restock household essentials and get trusted local brands delivered with unparalleled convenience and less waste,” said Liza Benson, Partner at Moderne Ventures. “Our strategy at Moderne is rooted in connecting our portfolio companies with top real estate companies to create outsized returns. We are excited to work with The Rounds and multifamily partners to bring this valuable amenity to many more residents.”
SOURCE: PRNewswire