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BGF makes new investment in Gousto

BGF News 16.04.2020.

Gousto, the UK’s leading recipe box company has raised an additional £33 million in a funding round led by investors: Perwyn, BGF, MMC Ventures and Joe Wicks.

As one of the UK’s fastest-growing technology businesses, Gousto is now trading profitably and has seen revenue grow by 70% YoY (Q1), with over 4 million meals delivered to 380,000 UK households monthly.

Gousto will continue to harness technology to further propel its market-leading proposition, with a particular focus on expanding its 100-strong tech team in London. Hiring has already started for around 100 roles at the company’s existing facility in Spalding, Lincolnshire and for its second fulfillment centre opening later this year. Gousto plans to fill over 400 roles within the next four months across teams in Spalding and its HQ in London, with an aim of increasing headcount by over 700 by 2022, whilst supporting the revitalisation of the economy. BGF has now invested a total of £16m into Gousto, following an initial investment and six follow-on investments.

 

The UK’s online recipe box market previously was expected to exceed £1.5 billion by 2022, but because of coronavirus, most of the developed world will shop for their groceries online for the first time. This forced adoption is likely to accelerate structural change in the market by many years.

Dedicating its passion, brains and resources towards the Coronavirus response effort, Gousto is currently engaging with DEFRA (Department for Environment, Food and Rural Affairs) on a response effort for the vulnerable. It has already implemented contactless delivery for customers and donated the equivalent of 6,000 meals to The Trussell Trust foodbank network and to the homeless charity, Shelter.

Timo Boldt, CEO and Founder, said: “We continue to be laser-focused on our vision to become the UK’s most-loved way to eat dinner. This additional investment is not only a validation of our track record, but it is also an endorsement of our strategic vision of the future which is rooted in investing in innovative technology to transform the way we search for, shop for, and cook our food.

In these challenging times, we want to continue offering people more choice and especially more convenience. We will maintain our close relationships with the government and other charitable partners to ensure those already struggling don’t see their situation worsen.”

Simon Calver, BGF said: “Gousto has created a much- loved brand in the UK and has ambitious plans for further growth, which will see significant job creation. The entire Gousto team – right across the business – has worked tirelessly and swiftly to respond to the increased demand from customers, providing an essential service during lockdown and working to support vulnerable groups. We are pleased to be providing this funding alongside Perwyn, MMC Ventures and Joe Wicks.”

Stephen Welton, CEO, BGF said: “Gousto has experienced significant growth since our initial investment in 2015, and we are pleased to be making our seventh investment into the company. We are all in unchartered territory but continuing to make investments throughout this period is important on a number of levels – including ensuring that capital continues to support companies with strong growth potential. We are pleased to be backing Gousto’s longer-term growth plans with this new investment.”

As the only recipe box with an automated factory, Gousto is able to offer more meal choices than any other recipe box, globally (50+ weekly recipes). It also boasts the most delivery options (seven days a week including evenings), best value (£2.98 per serving), shortest lead time (rolling out next day delivery) while helping households eliminate food waste.