Swedish surplus online grocer Motatos – which launched operations in the UK in June – has secured €38m in a fundraising round.
The retailer – which offers customers heavily discounted prices on surplus inventory from wholesalers and distributors – said the cash boost would primarily be used to “grow high potential markets”, namely the UK and Germany.
The money was raised through a directed new share issue to existing shareholders. The round was led by SEB Private Equity, Motatos largest owner, and Exor Capital who each “increased their investment substantially” the company said.
Total funds raised since the company was founded in 2014 in Sweden – where it is known as Matsmart – now amount to more than €130m.
“Ultimately, this injection of capital allows us to accelerate the sustainable shift in the food and retail sectors in major European markets,” said Karl Andersson, CEO and founder. “Taking care of the resources let into production – for the climate’s and the consumer wallet’s sake – is not only common sense, but is really very urgent,” he added.
For its arrival in the UK earlier this year, Motatos appointed Christabel Biella as UK country manager. Biella joined from Farmdrop – which ceased trading in December after collapsing into administration – where she was supply chain director. Motatos UK buyer Andrew Jeeves also joined the business from Farmdrop.
The company said it had established partnerships with several UK distributors, including Wholegood and Pricecheck.
Motatos is one of several redistribution supermarkets in the UK market. Most operate as charities, but some, such as Company Shop and online-only retailer Approved Food, are run as commercial enterprises.
“It is now a little over a year since our initial investment in Motatos and we are very pleased with the results that the team has been able to produce in that time,” said Maria Bilkenroth, investment director at SEB Private Equity.
“Motatos’ providing cost-conscious consumers with sustainable choices that many can afford is something that is well aligned with our investment focus,” she added. “Growth in the sustainable business sector is vital for the circular shift to happen.”
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