Gousto secures further £9m in new funding round

Author

MMC Ventures

07 December 2015

High-growth Gousto raises further £9m

Gousto, the recipe box delivery company, has raised another £9m funding round as its meals gain nationwide popularity, bringing the total raised to £20m. BGF Ventures joins MMC Ventures, Unilever Ventures and the Angel CoFund to invest in the UK’s favourite recipe box delivery company.

MMC have completed a new round of investment in Gousto, a rapidly growing recipe box service. MMC invested alongside BGF Ventures , Unilever Ventures and the Angel Co-Fund.

Founded in 2012, Gousto delivers ingredients boxes for specific, suggested recipes. This latest investment includes £3m from BGF Ventures – the first investment for the £200m fund since it opened its doors to early stage technology companies in the autumn of this year – alongside existing investors MMC Ventures, Unilever Ventures and the Angel Co-Fund. TV presenter Andi Peters is also an investor, having been introduced to Gousto by his friend, star rugby player Jonny May, who converted him into a loyal customer after raving about the service.

Gousto is one of the UK’s fastest growing technology-based companies. Last month, it delivered more than 300,000 meals to homes throughout the UK, up nearly six times on the same time last year. Earlier this year, the business launched a free iOS app where customers can plan, order and arrange delivery of meals.

The UK market for online food delivery is already worth more than £8bn and the recipe box market is growing significantly. In little over three years, Gousto has achieved double Tesco’s inventory turnover, four times Ocado’s revenues on a per SKU basis, and double the average supermarket gross margin due to its zero waste rate and direct sourcing relationship with farmers, which cuts out the middlemen.

With the additional funding, Gousto will strengthen its team of chefs and nutritionists, broaden its sales and marketing efforts to reach even more customers, and continue to introduce a greater choice of meal and delivery options.

Gousto sends fresh ingredients and chef-designed recipes – which can be prepared and cooked in just 30 minutes – straight to the door of time-poor Brits. Together with step-by-step recipe cards, Gousto creates ten new meals every week. According to customers, discovering new recipes is the primary motivation for subscribing, with ease and convenience a close second. Moreover, the service takes the hassle away from supermarket shopping and significantly cuts down on food wastage by giving customers the right quantity of ingredients for each recipe.

Simon Calver, a Partner in BGF Ventures, will join the board of the company. Simon is the former CEO of LOVEFiLM, one of the UK’s most successful online subscription based businesses.

Timo Schmidt, CEO of Gousto, said: “This is an exciting time for Gousto customers. The new funding will be used to drive amazing product improvements in 2016. With the help of the team and our farmers, we have built a scalable platform that offers truly incredible value to customers. I am pleased to have the continued backing of our early investors, and to welcome BGF Ventures on board. Simon Calver’s experience of running LOVEFiLM as its CEO will be invaluable and I look forward to working with him closely.”

Simon Calver, Partner at BGF Ventures, said: “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. I firmly believe that they have a capability and ambition to become the leading brand in this fast growing and disruptive new sector.

“BGF Ventures has been established to back disruptive UK technology businesses, just like Gousto. We are also pleased to be announcing our first investment alongside respected funders Unilever Ventures, MMC Ventures and the Angel Co-Fund, who clearly share our view of Gousto’s market potential.”

Jon Coker, Investment Partner at MMC Ventures, said: “It has been a privilege to work with the team at Gousto for the last two years as they have grown the business incredibly quickly while also maintaining their focus on efficiency. We are pleased to welcome Simon Calver and BGF Ventures to the business – and are excited by what this round of funding will allow Gousto to achieve.”

Media Enquiries:

Kiera Sweeney / Timo Schmidt (for Gousto)

kiera@gousto.co.uk / timo@gousto.co.uk

Liz Warburton (for BGF Ventures)

0207 340 0643 | 07964 904 480

Liz.warburton@bgf.co.uk

Cordelia Meacher (for MMC Ventures)

Cordelia@fieldhouseassociates.com

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