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Farmstead

LOCATION: San Francisco, California

INDUSTRY: Food & Beverage, Consumer Products

Farmstead is an online-only grocery service with no in-store shopping options. Instead, The Company operates dark stores, which are small-format grocery warehouses designed to streamline picking, packing, and delivery within a 50-mile radius.

This model allows Farmstead to eliminate many of the fees and inefficiencies of traditional grocers and competitor grocery delivery services.

Delivery to customers is free for subscription members and customers within a radius for sizeable one-hour delivery orders. While smaller than traditional grocery formats, Farmstead’s warehouses still offer a mixture of national brands and local products. Today, Farmstead is available in San Francisco, Charlotte, and Raleigh and looks to expand into six new markets in 2021 and an additional dozen in 2022.

Farmstead’s business model is backed by its proprietary AI-based software that identifies optimal inventory levels, generates efficient order pick-pack and delivery, and significantly reduces food waste compared to the traditional grocery.

Farmstead’s founders have a successful track record in emerging technologies, and the management team has extensive grocery and grocery-delivery expertise.

Kaulig Capital was introduced to Farmstead and the investment opportunity through our relationship with an advisor and co-investor in our Kaulig Capital portfolio companies.

https://www.farmsteadapp.com/