Misfits Market: Abhi Ramesh
Guy Raz sits down with Abhi Ramesh to unpack how an apple-picking trip revealed that millions of pounds of perfectly edible produce go to waste each year, and turned that insight into a billion grocery empire. After testing demand with Facebook ads selling ugly-produce subscription boxes at a discount, Misfits Market landed million in venture capital and scaled into a full online grocery store operating in 48 states with 1,100+ items.
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Episode Recap
Guy Raz sits down with Abhi Ramesh to unpack how an apple-picking trip revealed that millions of pounds of perfectly edible produce go to waste each year, and turned that insight into a $2 billion grocery empire.
The Apple Farm Revelation
In 2018, Abhi Ramesh was apple picking near Philadelphia when he learned that misshapen and blemished produce—perfectly edible food that fails grocery stores' cosmetic standards—gets sent to animal feedlots or left to rot in fields. This was a revelation. He launched Facebook ads offering subscription boxes of "ugly" produce at a discount to test whether consumers would actually buy it. Demand was immediate and overwhelming.
Four months after launch, Misfits Market had thousands of customers and Ramesh was hiring Craigslist drivers to deliver boxes from a rented Philadelphia warehouse. That early traction earned the company $2 million in venture capital to expand beyond a single-city operation.
From Subscription Boxes to Full Grocery
The business model quickly evolved from a niche ugly-produce subscription into a comprehensive online grocery store. Today Misfits Market offers 1,100+ items including organic produce, meat, seafood, dairy, pantry staples, snacks, beverages, and household essentials. The company now operates in 48 states, delivers to over 40,000 zip codes, and rescues an average of 500,000 pounds of food from landfills every week.
Ramesh emphasizes that the company's mission goes beyond selling discounted food. Misfits Market is building a more sustainable food system where quality and sustainability matter more than appearance, and where farmers are compensated for produce that would otherwise become waste.
Growth, Crisis, and Perspective
The pandemic turbocharged Misfits Market's growth as millions of consumers turned to online grocery delivery. But that rapid scaling came with intense operational pressure. Ramesh describes being "woefully unprepared for COVID, just the sheer volume of folks kind of signing up." On top of the business crisis, his wife was diagnosed with lymphoma during the pandemic. He says that personal challenge gave him perspective on what constitutes a true life-or-death problem versus a difficult but solvable business problem. That clarity helped him navigate the company through its most turbulent period.
Today Misfits Market is valued at $2 billion, having acquired Imperfect Foods in 2023 and The Rounds in 2025. Ramesh has also launched a B2B logistics arm called Fullfilled by Misfits, extending the company's impact into broader food-system reform.
Key Takeaways
- 1Start with a minimum viable test before building infrastructure: Abhi Ramesh validated ugly-produce demand with Facebook ads and Craigslist deliveries before raising venture capital or scaling operations.
- 2Personal crisis can sharpen business judgment: During the pandemic, Ramesh's wife's cancer diagnosis gave him perspective on what problems truly require urgent attention and which are difficult but solvable.
- 3Redesign the system, not just the product: Misfits Market did not just sell cheaper produce. It built a new food distribution model that pays farmers for rescued crops and gives consumers access to quality groceries.
- 4Acquisition can extend mission, not just market share: The purchases of Imperfect Foods and The Rounds expanded Misfits Market's reach into B2B logistics and reusable packaging, reinforcing the company's sustainability goals.
