- Rosie, an e-commerce service provider for independent retailers, has raised $10 million in Series A funding, according to a press release Wednesday. The round was led by Avenue Growth Partners, which focuses on B2B software firms.
- Rosie will use the funds to introduce new features aimed at boosting the customer experience, tools that connect CPGs with consumers and new products that provide additional revenue streams for retailers.
- The new funding comes as independent grocers increasingly prioritize e-commerce and providers like Rosie pitch their services to retailers as an alternative to Instacart.
Rosie has seen a significant uptick in its business over the past year as independent retailers have scrambled to boost their digital offerings and, in many cases, come online.
Since last spring, Rosie has more than tripled its workforce as the number of stores it signed on as clients rose 900% compared to before the coronavirus pandemic. Its new hires have included data specialists as well as senior managers with experience in retailer outreach and support.
Rosie has rolled out new digital offerings aimed at meeting evolving retailer and consumer demand. This includes a new digital storefront for retailers as well as a service enabling the sale of prepared meals and catering solutions, both launched in December. The latter enhancement came as more and more consumers have looked to retailers for quick, fresh meals throughout the day.
Nick Nickitas, founder and CEO of Rosie, said the new funding round will help the company reach more retailers and develop critical digital tools. While online sales have helped retailers gain and retain new customers, they’ve also put additional pressure on profits, necessitating new revenue streams like digital advertising.
“This investment will accelerate our tech roadmap, enable us to launch new products, and continue to rapidly scale up our retailer and brand community with new and existing partners,” Nickitas said in a statement.
GrocerKey, which also provides white-label e-commerce technology to retailers, announced $2.4 million in new funding last week, while online grocers like Good Eggs and Imperfect Foods have welcomed significant new investment capital.
Research points to continued growth in grocery e-commerce, but the size of the prize is up for debate. E-commerce firm Mercatus and research firm Incisiv project that online grocery sales will leap to $250 billion by 2025.