KB Partners Adds Two Portfolio Companies

KB Partners, an early-stage venture firm based in Chicago, recently added two companies to its Midwest-focused portfolio.

The $20 million Venture Fund I co-invested with one high-net-worth individual in EthnicGrocer, an e-commerce company that sells hard to find ethnic foods over the Internet. The company has launched Indiangrocer.com, its first site targeting the Indian community.

Subhash Bedi, chief operating officer at EthnicGrocer, said the company intends to add as many as 30 new ethnicities over the next two months. Additional proceeds from the funding will serve to significantly expand staff and, after the hires are completed, for marketing.

“We plan to raise another $10 million in around 6 weeks,” Bedi said. “We would definitely like to find the right strategic partner.”

KB Partners co-founder Keith Bank said EthnicGrocer’s new sites will serve Chinese, Latin and Korean markets. He added that the goods the company sells are largely non-perishable, removing some concerns associated with delivery of perishable goods.

Separately, KB co-invested with New World Equities of Chicago in TraffiCop, an Internet-based software program that tracks international shipments.

“They have logistics applications that they are selling to companies that are involved in international product shipments,” Bank said. “They can track products and tell users in real time where the goods are.”

The Glen Ellyn, Ill.-based company has partnered with Ryder and is implementing its system with corporations that have international shipping needs.

KB Partners Venture Fund I, which closed on $20 million in April, has now made five investments, Bank said.