Farmstead, the nation's first AI-driven digital grocer, announced Thursday that it has raised an additional $2.2 million venture round, bringing its total raised to date to $7.5 million and setting the stage for accelerated geographic expansion.

This latest venture round was raised from ARTIS Labs, Resolute Ventures, Y Combinator, Red Dog Capital and other investors.

“Farmstead is turning the grocery game on its head, leveraging technology to obtain huge efficiency gains,” says Stuart Peterson, Founder of ARTIS Labs. “The work Farmstead is doing has wide implications not only for consumer-facing grocery buying, but for the whole supply chain. The fact that Farmstead is trending towards positive contribution margin already speaks volumes about the efficiency of their model. We’re really excited to be involved.”

The Bay Area-based company, which started in 2016, says its AI-powered predictive analytics models help it accurately predict demand, supply accordingly, deliver fresh orders in less than an hour and minimize food waste. The company also says its customer base has been growing steadily — 29 to 30 percent month-over-month with repeat business.

“We went into this business knowing that data would be the key to making our model sustainable,” says Farmstead CEO and co-founder Pradeep Elankumaran. “Our experience in the Bay Area has shown us that it’s possible to locally source and deliver groceries profitably. In the last year we have turned all the tricky operational parts of our business into digital products that abstract away much of the complexity and drive profitability on each order. With our playbook in hand, we’re already laying the groundwork for aggressive geographic expansion in 2019.”