High-growth Gousto secures BGF Ventures investment
Gousto, the recipe box delivery company, has raised another £9m funding round as its meals gain nationwide popularity, bringing the total raised to £20m.
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 a really exciting time for Gousto as subscriptions continue to climb. I am extremely 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 for six years will be invaluable as we continue to scale the business.”
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.”
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