– GrubMarket has acquired Butter, a SaaS platform that digitizes the food distribution process with AI
– Butter’s AI capabilities help automate the ordering process for food wholesalers, improving accuracy and efficiency
– GrubMarket is known for acquiring companies to consolidate the supply chain and enhance its B2B e-commerce offerings, with Butter being one of the few ventures aimed at bolstering its tech stack
Modern food purchasing has shifted online, with many restaurants and grocery stores using QR codes and delivery services like Instacart. GrubMarket, a software and services provider for food suppliers and customers, recently acquired Butter, a SaaS platform aiming to digitize the manual food distribution process using AI. The acquisition adds Butter’s eight-person team and software suite to GrubMarket’s offerings.
Butter, valued at $39 million, raised $12.3 million in total funding, including investments from Google’s Gradient Ventures and others. GrubMarket, which has acquired over 100 companies, operates as a B2B e-commerce platform, focusing on supply chain consolidation. With an annual revenue run rate expected to surpass $2 billion in 2024, GrubMarket has been profitable for three consecutive years.
Butter’s AI tools streamline the ordering process in the wholesale food industry, converting voice notes into digital lists for easy tracking and analysis, enhancing distributor productivity. GrubMarket’s acquisition will integrate Butter’s capabilities into its software suite, strengthening its tech stack. The fast-paced deal is a strategic move for both companies, leveraging Butter’s AI capabilities to enhance GrubMarket’s existing offerings and customer reach. The acquisition is seen as a way to boost productivity and efficiency in the food distribution industry.