The Rounds Secures $24 Million in Series B Funding, Expands Service Offerings and Markets

The Rounds, a startup known for delivering recurring grocery and household essentials in reusable packaging, has secured $24 million in Series B funding. The new investment is set to fuel the company’s expansion, product development, and hiring efforts, as it aims to bring its service to more markets.

Along with the funding announcement, The Rounds unveiled several new customer features. Notably, users can now make one-time purchases and choose their preferred delivery day, offering greater flexibility. The company also enhanced its AI-powered algorithm, which now provides even more accurate predictions on when customers need to restock their products.

Founded in 2019, The Rounds offers a $10 subscription service that allows customers to order weekly bundles of essentials, including household basics, personal care items, pantry staples, and products from local businesses like bakeries and coffee roasters. The company recently expanded its product range, adding over 100 new items, including fresh produce and home essentials, bringing the total to 12,000 SKUs—almost double last year’s offerings.

Customers have the option to customize how frequently they receive certain items, ensuring they never run out of essentials like toilet paper, milk, or eggs. Previously, The Rounds determined the “Refill Day” for each neighborhood, but now customers can choose their own delivery day to better fit their schedules.

In line with its commitment to sustainability, The Rounds delivers products in reusable bags and refillable containers. The company’s “reverse logistics” system allows customers to leave empty containers on their doorsteps, which delivery workers then collect, sanitize, and reuse, significantly reducing waste. To date, The Rounds has saved over 1 million pounds of packaging waste, a major increase from the 375,000 pounds reported earlier.

The startup has also introduced a feature that allows users to make one-time purchases, helping to prevent the delivery of unnecessary products. While users have always been able to modify their orders before delivery, this new option provides an extra layer of control.

Machine learning plays a key role in The Rounds' service, offering personalized product recommendations and smarter predictions on when everyday items need to be restocked. Co-founder and CEO Alex Torrey shared that these predictions are becoming more accurate, aiming to create what he describes as a “psychic home manager” that anticipates customers' needs before they do.

Torrey envisions a future where the prediction algorithm is so advanced that factors like pollen count could influence restocking decisions. For instance, the system might automatically accelerate the delivery of tissues if it detects an increase in pollen, knowing the customer suffers from allergies.

Currently, The Rounds operates in select U.S. markets, including Atlanta, D.C., and Philadelphia. While the company plans to expand to more markets in early 2025, New York City is not yet on the radar. Torrey explained that the company chooses markets that offer valuable learning opportunities, allowing them to refine operations before scaling further.

The recent funding round was led by Moderne Ventures, with participation from Construct Capital, First Round Capital, FJ Labs, and Redpoint Ventures. The Rounds is now focused on expanding its machine learning and data science teams, and is also looking to hire a Chief Marketing Officer and Chief Operations Officer.