E-grocer Weee raises $315M to fuel North America expansion

Dive Brief:

Weee, an e-grocer offering Asian and Hispanic groceries, has raised $315 million in Series D funding, the company announced on Thursday.
Weee said it plans to use the new funding to accelerate expansion across North America, hire additional personnel, build its product assortment and develop personalization features to more effectively reach consumers.
The new funding surges Weee’s valuation to $2.8 billion, Bloomberg reported, and comes at a time when the company is eyeing a potential initial public offering.

Dive Insight:

The new investment brings Weee’s total funding raised to more than $415 million and broadens the company’s list of investors, underscoring high demand for e-commerce and international groceries that was further amplified by the pandemic.

Currently, Weee offers an assortment of more than 3,500 products, with an emphasis on its more than 300 types of local, organic, and seasonal produce. The company also sells canned goods, self-care products, bakery items, beverages, snacks, meat, seafood and dairy products.

Since its founding in California in 2015, Weee has worked to expand its offerings and grow its presence on both U.S. coasts and in Texas.

Originally targeting Asian consumers, Weee has recently branched into selling Hispanic groceries and now brands itself as an “ethnic e-grocer.” The entrance into Hispanic groceries opens up a larger market for Weee as competition heats up in the Asian grocery space, which includes e-grocers Chowbus and newly launched Umamicart, along with brick-and-mortar chains like H Mart and 99 Ranch Market. Weee noted in its funding announcement that the ethnic grocery market is expected to surpass $464 billion by 2030.

By 2024, Weee aims to expand from serving 14 markets to being in 30 cities across North America. Boston, Philadelphia and Chicago are on Weee's radar, Larry Liu, Weee’s founder and CEO, said in an interview last fall.

The company is also eyeing going public and earlier this year hired Ankur Shah its first CFO and chief strategy officer. Shah told Bloomberg that he is hopeful the company will list on the public markets within three years, noting that Weee might also consider going public through a special purpose acquisition company.