NEW YORK — Misfits Market will acquire Imperfect Foods, creating a combined business set to surpass $1 billion in sales and reach profitability by early 2024. Both online grocers focus on reducing waste by partnering with producers to rescue and redistribute irregular or surplus produce, pantry staples and more to consumers at lower costs.

Imperfect Foods, founded in 2015, and Misfits Market, founded in 2018, have collectively saved nearly 500 million lbs of food from “lesser outcomes,” according to the companies. The brands will continue separate operations in the short term. Abhi Ramesh, founder and chief executive officer of Misfits Market, will lead the combined company, and executives from Imperfect Foods will join the Misfits Market leadership team.

“We have a tremendous opportunity to advance the shared mission of both brands, which is nothing less than a fundamental re-imagining of both the grocery category and the broken US food system,” Mr. Ramesh said. “The strengths of the Imperfect Foods organization, from its in-house delivery fleet and robust private label program to its sustainability commitments and innovation, add immediate scale and depth to what we’re building at Misfits Market.”

Financial terms of the transaction were not disclosed.