The Rounds secures $24M to expand its ‘household restocking’ delivery service to additional markets

The Rounds, a startup specializing in delivering recurring grocery and household essentials in reusable packaging, announced on Monday that it has secured $24 million in its Series B funding round. This new funding will be used for product development, expanding the team, and extending the service to new markets.

Alongside the funding news, The Rounds introduced several customer-focused features, including the option for one-time purchases and the ability to choose a preferred delivery day. The company has also enhanced its AI-powered algorithm to make more accurate predictions about when customers need to restock products.

Since its launch in 2019, The Rounds has offered a $10 subscription that allows customers to order weekly bundles of household basics, personal care items, pantry staples, and goods from local vendors such as bakeries and coffee roasters. Recently, The Rounds expanded its product offerings by adding over 100 new items, including more fresh produce and home essentials. The company’s catalog now boasts 12,000 SKUs, nearly double last year’s total of 650 SKUs.

The Rounds is committed to sustainability, delivering products in reusable bags and refillable containers. It also operates a “reverse logistics” system, where customers leave empty containers on their doorsteps for collection, sanitization, and reuse. This system has helped the company save over 1 million pounds of packaging waste to date, a significant increase from the 375,000 pounds reported earlier.

Currently, The Rounds operates in select U.S. markets like Atlanta, D.C., and Philadelphia, with plans to expand to a few more markets in early 2025. However, New York City is not yet on the company’s radar. The recent funding round, led by Moderne Ventures with participation from Construct Capital, First Round Capital, FJ Labs, and Redpoint Ventures, will also support the expansion of The Rounds’ machine learning and data science teams, as well as the recruitment of a chief marketing officer and chief operations officer.

To date, The Rounds has raised a total of $66 million in funding.