FreshDirect Inc., an online grocery, has raised $31 million in a private placement of its equity securities.
The biggest investor was an AIG-sponsored investment funds contributed $15 million. Other institutional and individual investors including CIBC Capital Parners, 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.
The company plans to use the capital for operational and capital improvements and future geographic expansion.
FreshDirect (www.freshdirect.com) delivers food and groceries to Manhattan residents, and claims said that 120,000 people have become FreshDirect customers.
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