Misfits Market: Abhi Ramesh

In this episode of How I Built This, Guy Raz speaks with Abhi Ramesh about launching and growing Misfits Market, a grocery delivery service focused on selling 'imperfect' produce at lower prices. The idea originated after Abhi discovered a significant amount of edible fruits and vegetables were going to waste due to aesthetic imperfections. He began by sourcing produce from local farmers unable to sell it in conventional grocery stores due to its appearance. Ramesh first tested the demand with a pre-sale landing page and pivoted from logistics to grocery delivery when he realized the market potential.

Misfits Market quickly grew, particularly during the COVID-19 pandemic, when demand surged and the company had to rapidly adapt to manage a doubling customer base almost overnight. Abhi detailed how they had to make swift decisions about logistics and delivery systems, even turning off new customer sign-ups temporarily due to overwhelming demand. Despite these challenges, the business achieved impressive growth, moving into 48 states and expanding its product range.

Ramesh explains how the model not only saves edible food from going to waste but also allows consumers to buy quality produce at a lower price point. He also discusses the strategic decisions around sourcing and logistics infrastructure, and how acquiring Imperfect Foods has further enhanced their operational capabilities. Looking ahead, Abhi reflects on the future of grocery shopping and the significant potential for growth in online grocery delivery.