Insider Brief
- The Rounds, an AI-powered inventory management platform, secured $24 million in Series B funding led by Moderne Ventures, bringing total funding to $66 million.
- The company will use the funds to expand its service, focusing on profitable growth, enhancing AI capabilities, and launching in new markets.
- The Rounds aims to revolutionize grocery and household essentials delivery with a sustainable model, reducing packaging waste through reusable containers and a two-way logistics network.
PRESS RLEASE — NEW YORK/August 21, 2024 /PRNewswire/ — The Rounds, an inventory management platform that delivers recurring grocery and household essentials in reusable packaging, today 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.”
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.”
The company has also expanded its Board of Directors to include Gad Allon, a professor of Operations, Information, and Decisions at Wharton School of Business, who also serves as the Director of the University of Pennsylvania’s Management & Technology program. “The Rounds exemplifies the critical intersection of tech innovation and operations, which is essential for the future of last-mile logistics to be sustainable,” said Professor Allon. “By leveraging AI to optimize operations and reduce waste, The Rounds is not just scaling up its business but is also setting a new standard for sustainable growth and efficiency in two-way last-mile logistics. I am excited to join the Board and contribute to a mission that aligns with my research on scaling operations in tech ventures and linking strategy with execution.”
To learn more about The Rounds, visit therounds.co.
About The Rounds
The Rounds is an AI-driven shopping platform designed to intelligently manage home essentials and reduce packaging waste. For $10 a month, Members can automate the delivery and replenishment of thousands of grocery SKUs in categories including household, personal care, pantry, produce, dairy, and dry goods, along with favorites from local brands and businesses. All products are delivered in reusable packaging and empty containers are picked up, sanitized, and refilled by The Rounds weekly, leveraging their proprietary two-way logistics network. The company’s personalized set-it-and-forget-it platform allows for predictive recurring deliveries and smarter product recommendations over time. Launched in 2019, the company has expanded to service Philadelphia, Washington D.C., and Atlanta.
About Moderne Ventures
Moderne Ventures is a strategic venture capital and growth equity firm with more than $500M assets under management and a 16-year track record generating top-tier returns across multiple funds. Moderne is a generalist investor with a vertical approach focused on technology companies in and around the multi-trillion-dollar industries like real estate, finance, insurance, and sustainability — which make up >17% of the US GDP and are ripe for innovation and disruption. The Fund focuses on companies that pertain both to these verticals and that can also expand beyond these industries to capture larger markets and top-tier venture returns.
Moderne differentiates itself by bringing customers to its portfolio companies. Moderne has both a Fund and an Industry Immersion Program, the Moderne Passport, designed to foster innovation, partnership, and growth between industry partners and emerging technology companies. Moderne has built an extraordinary network of over 1,500 executives and corporations within its core industries and programmatically connects its portfolio to the industry network to help generate growth for the portfolio. Moderne has invested in over 150 companies across three funds.
Contact:
Lauren O’Reilly
laurenoreilly@therounds.co
