GrocerKey, a Madison-based e-commerce company and a 2020 Inno on Fire winner, is raising more capital from private investors to fund its growth.
According to a recent document filed with the U.S. Securities and Exchange Commission, the company opened an equity offering amount of $2.48 million and has so far secured $2.4 million from investors. A total of 18 investors participated in the offering, according to the document.
The company stated in the document that proceeds will be used for general company purposes. Jeremy Neren, founder and CEO of GrocerKey, did not offer further details on the round.
The company saw an unprecedented amount of orders streaming into its e-commerce platform earlier this year, and a rapidly growing pipeline of grocers that were in need of digital technology to process orders. That led to GrocerKey embarking on a hiring spree to meet the increased demand for curbside pick-up and home delivery services, providing more than 300 new e-commerce fulfillment jobs to people in the process.
Neren formally launched GrocerKey in 2014. In 2018, the company announced it secured $2.5 million from investors, including Woodman’s Markets and dunnhumby Ventures.
Earlier this year, Neren said GrocerKey had experienced an 85% increase in sales for its second quarter when compared with the same period in 2019 and the company was on track to making $12 million in revenue for the year. GrocerKey has fulfilled over 650,000 orders and $100 million in lifetime e-commerce revenue, according to its website.
The company ranks No. 311 on the 2020 Inc. 5000, a list of the nation’s fastest-growing private companies. The company experienced growth of 1,455% between 2016 and 2019.
