Recipe kit brand Gousto has raised £50m in additional funding from its investors to help the business navigate the current challenging economic environment.
The funding round has not been publicised by the group but Sky News reported the raise took place at a “significant” discount to its previous $1.7bn valuation.
A source close to the company confirmed Gousto had raised £50m from existing investors but no official statement has been released.
The size of the discount to the last funding round is unclear.
“The raise will provide the cash headroom required as the company enters a volatile period,” an insider told Sky News.
Founded in 2012 by Timo Boldt, the meal kit delivery service established ‘unicorn’ status in November 2020 when a funding round valued the group at $1bn.
It follows a period of rapid growth thanks to soaring demand for its service during the pandemic, with revenues more than doubling to £189m in 2020 and the group also recording its first-ever profit.
A further $100m fundraising in January 2022 pushed Gousto’s valuation to $1.7bn as Japanese conglomerate SoftBank backed the group through its Vision Fund 2. It was followed by a secondary share placing of $230m in February 2022.
Revenues in 2021 increased by 67% to £315m, representing the ninth consecutive year of double-digit growth at the business.
Gousto was last week named the sixth fastest-growing food and drink brand on a two-year sales growth basis.
According to Alantra’s annual Fast 50, the company registered two-year annual compound sales growth of 95%. It follows Gousto topping the list in the prior year.
Goutso has now raised more than £400m in funding, with investors including Fidelity International, Grosvenor Food & AgTech, pension fund Railpen, Perwyn, BGF, MMC Ventures and health and fitness guru Joe Wicks.
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