Misfits Market, the online platform that delivers imperfect groceries to help minimize waste, announced the acquisition of household restocking service The Rounds on Friday.

As a result of the deal, Misfits Market plans to take on over 250 items from The Rounds’ inventory. This allows the company to diversify into additional categories, such as household items, including cleaning supplies and paper products. 

In a bid to transition The Rounds customers to Misfits Market, the company is offering a $30 credit, along with a complimentary one-year subscription to its new Misfits+ membership, which includes exclusive weekly deals and free shipping.

The company declined to disclose the terms of the deal. It also couldn’t confirm whether layoffs would be part of the acquisition, as decisions are still being finalized. The Rounds has raised a total of $66 million from investors such as Andrew Chen (Andreessen Horowitz), Annie Kadavy (Redpoint Ventures), Construct Capital, and First Round Capital.

Along with diversifying its offerings, the deal will allow Misfits Market to collaborate with former partners from The Rounds, including major multifamily operators such as AvalonBay, Greystar, and Related. 

Misfits Market also aims to gain a stronger foothold in the industry as a result of the deal. Notably, the company will continue to pursue M&A as part of a broader growth strategy, especially at a time when consumer awareness of food waste and sustainability is on the rise.

“This market is ripe for consolidation, and we are constantly looking at deals,” Misfits Market CEO Abhi Ramesh told TechCrunch.

This marks Misfits Market’s second acquisition, following its purchase of Imperfect Foods in 2022, another competitor in the market. 

Misfits Market, founded in 2018, offers produce that has been rejected by farmers and suppliers for being considered too “ugly” to sell in grocery stores, often due to being too small, oddly shaped, or having discoloration.

The Rounds, meanwhile, has offered its sustainable grocery delivery service since 2019 that refills home essentials using reusable packaging. 

To date, Misfits Market has rescued more than 238 million pounds of food, according to the company. The Rounds has saved over 1 million pounds of packaging waste and estimates to save an average of 500,000 pounds of food each week.