How I Built a $1 Billion Start-Up Called Misfits Market

Summary

Abhi Ramesh, the founder of Misfits Market, turned his entrepreneurial ambitions into a billion-dollar grocery delivery service that sells imperfect produce at a discount. His journey was marked by several early business failures, risk-taking, and financial hurdles, including $150,000 in credit card debt. Misfits Market, launched in 2018, grew rapidly by 2021, delivering millions of pounds of food and securing $350 million in projected sales. Abhi credits his success to learning from past failures and his family's sacrifices, viewing his entrepreneurial journey as a continuation of their American dream.

Takeaways

• 🚀 Misfits Market, founded by Abhi Ramesh, is an online grocery delivery service focused on selling 'ugly' produce at a lower price.
• 📈 By 2020, Misfits Market had shipped 77 million pounds of food to 400,000 households. In the first four months of 2021, it procured the same amount as the entire previous year.
• 💼 Misfits Market received over $300 million in funding and reached a valuation of over $1 billion, entering unicorn status.
• 📚 Abhi’s entrepreneurial journey began in high school when he started reselling textbooks on Amazon, followed by launching an SAT tutoring company.
• 💡 The idea for Misfits Market came when Abhi learned about farmers wasting 'ugly' produce that couldn’t be sold to stores, which sparked his interest in creating a sustainable business model.
• 💳 Abhi took on $150,000 in credit card debt to launch Misfits Market, investing heavily in Google and Facebook ads to build a customer base.
• 👷 The company began in a small 700-square-foot facility, shipping only 15 boxes a day, and rapidly scaled up to hundreds of orders weekly.
• 💰 Misfits Market raised $2 million in its first funding round, which helped accelerate its growth and operations.
• 📦 Misfits Market continued expanding, especially during the COVID-19 pandemic, and by March 2021, the company was five times larger than the previous year.
• 🌍 The company aims for rapid growth, not just for profit, but to provide more affordable and accessible food to more people, aligning with its mission.

Q & A

Who is the founder of Misfits Market?

Abhi Ramesh is the founder of Misfits Market.

What is Misfits Market?

Misfits Market is an online grocery delivery service that sells imperfect produce at a lower price.

How much debt did Abhi Ramesh personally take on to launch Misfits Market?

Abhi Ramesh took on $150,000 in credit card debt to launch Misfits Market.

What was Misfits Market’s expected sales for 2021?

Misfits Market’s expected sales for 2021 were $350 million.

What was one of Abhi Ramesh's first business ventures?

One of Abhi Ramesh's first business ventures was buying textbooks from classmates and reselling them on Amazon.

How did Abhi Ramesh find the idea for Misfits Market?

The idea for Misfits Market came during a visit to a farm where Abhi noticed unsellable apples on the ground and realized he could sell this imperfect produce to consumers.

How did Misfits Market initially reach consumers?

Misfits Market reached consumers by running ads on Google and Facebook, which Abhi paid for by maxing out five credit cards.

What role did Edward Lando play in Misfits Market’s early days?

Edward Lando, a close friend and angel investor, provided crucial funding to help Abhi pay off his credit card debt and start buying inventory.

What was Misfits Market’s growth during the pandemic?

Misfits Market grew five times larger during the first year of the COVID-19 pandemic, with its valuation reaching $1.1 billion.

What challenge did Abhi face in scaling Misfits Market’s operations?

One challenge Abhi faced was moving fulfillment centers four times in the first year and a half, which was costly and complicated the logistics.