Recipe box delivery business Gousto secures further $2m MMC Ventures-led funding
Latest backing takes total investment in Dragon’s Den featured business to $2.5m
Online recipe box delivery business Gousto today announced the completion of a $2m round of investment, led by venture capital firm MMC Ventures.
Founded in 2012 by Timo Schmidt and James Carter , Gousto allows users to browse recipes on its website and order the needed ingredients for delivery in their exact quantities, a model that the company claims eliminates waste and promotes healthy eating.
The founding pair achieved nationwide exposure in September when they were rejected from the BBC Two show Dragon’s Den, only to conclude a £500,000 investment deal from a group of food industry veterans weeks later.
Boosted by the investment, the company has performed strongly in recent months, with latest figures showing 138% month-on-month growth with 26,000 meals ordered per month.
The latest $2m investment is another display of faith in Gousto’s potential, which aims to capitalise on the opportunities offered by the fast-growing the online food sector – currently estimated at £7bn, the market is forecast to grow to £18bn by 2018.
The MMC Ventures-led backing included input from previous Gousto investors, including the Angel CoFund, and will be used to fund additional chef and nutritionist hires at the company in order to improve and develop the recipes and consumer offering.
Timo Schmidt, co-founder of Gousto, said: “Our value proposition is unmatched: organic vegetables, the highest quality British meat, and everything else you need to make delicious meals for only around £5 per portion – plus no food waste and new recipes to choose from every week.
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“People love recipes and cooking, we simply make their lives easier and better. We had 3 funding offers and went with MMC because we think they really understand our concept best and are supporting us with their entire network – we’re really excited to be working with them.”
Jon Coker, investment partner at MMC Ventures, added: “We are excited to announce our investment in Gousto and look forward to working with Timo and James. We believe there is a significant opportunity for disruption in online grocery but it is a tough market to execute in.
“That is why we have backed Gousto – Timo and James are outstanding, they have achieved a market leading position in a short period of time on a limited budget and we believe our investment will allow them to really accelerate the growth.”