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NEW YORK -- FreshDirect, Inc., the New York-based online fresh food provider, announced today that it has completed a private placement of its equity securities to a limited number of accredited investors.
FreshDirect raised $31 million in the private placement. AIG-sponsored investment funds, as advised by AIG Global Investment Corp., led the round with a combined $15 million investment. Other institutional and individual investors, including CIBC Capital Partners, Canyon Partners and Mercantile Capital Partners, LLC, funded the remaining $16 million.
"The success of this important capital raise in a difficult financial environment speaks to the strengths and long-term prospects of our core business," said Jason Ackerman, president of FreshDirect.
FreshDirect plans to use the capital for operational and capital improvements and future geographic expansion. After its first year of service delivery, the company is currently operating at annualized sales of over $75 million.
FreshDirect is currently serving fresh food and groceries to Manhattan residents living south of 96th street on the East Side and south of 125th street on the West Side. Since opening for deliveries in September 2002, approximately 25 percent of households in Manhattan have become FreshDirect customers. Currently, the company has 120,000 customers, secures more than 2,500 new customers per week, and has fulfilled over 500,000 orders since opening. FreshDirect will continue its rollout citywide over the next few months.