Modern Milkman has secured £10m investment to support the expansion and evolution of its doorstep delivery model.
It brings the business’ total funding to over £60m.
The company plans to introduce a broader suite of integrated services to “make sustainable choices easier and more convenient for customers”.
The funding comes from Salica Investments, the UK-based investment firm, marking Modern Milkman as the first direct-to-consumer business in its Growth Debt Fund portfolio.
“Modern Milkman has a strong, distinctive and convenient offering for households across the UK,” said founder Simon Mellin. “This timely investment from Salica enables us to go beyond customer expectations and unlock a new generation of integrated doorstep services.
“Our growth and customer satisfaction demonstrate a clear consumer appetite for sustainable alternatives,” he added. “With this backing, we’re well-positioned to scale while helping households reduce their environmental impact.”
Read more: Modern Milkman slashes operating losses for second year in a row
It comes as the business slashed its operating profits by 42% to £6m in the year to 29 December 2024, compared with a loss of £10.5m in 2023.
In the latest accounts published at Companies House, turnover increased by 13% from £46.2m to £52m thanks to expansion into the US. It grew the US market’s annualised run-rate revenue from approximately $4m in the period immediately before the acquisition to $12m by the end of 2024.
However, the group strategically reset in the UK, which led to a “slight, planned contraction in UK revenue” but was “transformative for margin generation”.
The business said this latest round of investment was a “significant milestone” in its mission to “redefine sustainable doorstep delivery at scale”.
“Modern Milkman is a business with exceptional leadership and a clear strategy,” said Usman Ali, partner in Salica’s Growth Debt Fund. “Its commitment to sustainability and the circular economy creates long-term value while addressing global environmental challenges.”
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