Gousto backed by further $8.3m Unilever-led funding
Investment arm of consumer giant boosts prospects for online recipe delivery business
Online recipe box delivery business Gousto today announced the completion of a £5m ($8.3m) Series A round of funding, led by Unilever Ventures, the investment arm of the international consumer goods giant.
Founded in 2014 by Young Guns class of 2014 members Timo Schmidt and James Carter, Gousto operates a subscription service in which customers are delivered recipe ingredients in their exact quantities, a model which the founders claim eliminates waste and saves money.
The founders of the Startups 100-listed company made headlines this year when they appeared on BBC Two investment show Dragons’ Den, failing to gain investment only to conclude a £500,000 deal with major figures in the food industry just weeks later.
The latest investment was led by Unilever Ventures, with participation from existing investor MMC Ventures. It will be used to “significantly increase” investment in innovation and product development to improve the customer experience.
Jan Harley, director at Unilever Ventures, will also join the Gousto board as part of the deal.
Timo Schmidt, CEO and co-founder of Gousto, said: “The UK grocery market is worth £200bn ($330bn), and there has been a seismic shift from offline to online. Our extreme focus on quality and the fact that customer can choose the recipes they love, make Gousto completely unique.
“At £4-5 per meal including delivery this is a phenomenal value proposition that customers love. The funding is amazing news for customers as it will be entirely used to make their lives even easier and better.”
Jan Harley, director at Unilever Ventures, said: “Gousto has a great combination – a brilliant consumer proposition and a strong and innovative management team. Consumers are looking for great tasting, healthy, and convenient meal solutions and are increasingly looking online.
“We anticipate that the market will grow very strongly over the next few years and see Gousto as a potential market leader.”