Recipe box delivery business Gousto has raised £9m in funding to strengthen its team, broaden the sales reach and expand the range.
The latest funding round, taking total investment in the business to £20m, includes £3m from venture capital fund BGF Ventures alongside cash from existing investors MMC Ventures, Unilever Ventures and the Angel Co-Fund.
It is the first investment for the £200m fund for early stage technology companies which was launched in June by the Business Growth Fund (BGF).
Gousto, founded in 2012 by Timo Schmidt, delivers ingredients boxes with exact portions for specific recipes to the homes of customers. Last month, it delivered more than 300,000 meals in the UK, up almost six times on a year ago.
The ethical business, which now employs 120 staff, said that since launch it has achieved double Tesco’s inventory turnover, four times Ocado’s revenues on a per SKU basis and double the average supermarket gross margin as a result of a zero waste rate and direct sourcing relationship with farmers.
With the additional funding, Gousto plans to add to its team of chefs and nutritionists, broaden its sales and marketing efforts to reach more customers and continue to introduce a wider choice of meal and delivery options.
“With the help of the team and our farmers, we have built a scalable platform that offers truly incredible value to customers,” Schmidt said.
Simon Calver, a partner in BGF Ventures and former CEO of online subscription business LoveFilm, will join the Gousto board as a result of the investment.
“Timo and the team have a built a fantastic product and are already demonstrating that Gousto has the platform and systems to meet rapidly increasing customer demand,” said. “I firmly believe that they have a capability and ambition to become the leading brand in this fast-growing and disruptive new sector.”
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