About 10 years ago, MyWebGrocer officially launched. But this year they decided to raise a first round of funding. It is unique for a company that has existed for a decade to raise funding at this stage. MyWebGrocer raised a total of $13 million in Series A from the Stripes Group. The Stripes Group is a private equity firm based in New York.
The investment is considered late stage. MyWebGrocer is profitable. Investment banking company Montgomery & Co. was also involved in the deal. This indicates that MyWebGrocer may eventually have an IPO. The initial funding needed for getting MyWebGrocer off the ground was provided by founder Rich Tarrant. MyWebGrocer currently operates over 5,000 grocery stores in the country.
MyWebGrocer runs the websites for grocery stores. They also sell the advertising for consumer goods across the websites. Altogether, MyWebGrocer reaches 4 million shoppers. MyWebGrocer makes money from advertising revenue sharing and fees paid for running websites for grocery stores.