Sunday 18 August 2019

Recipe box firm Gousto secures £30m investment boost

Gousto secured the funding round as consumers continue to buy more recipe kits in a bid to make dinner easier.

Gousto founder Timo Boldt. The meal kit business has secured a £30 million funding round (PA).
Gousto founder Timo Boldt. The meal kit business has secured a £30 million funding round (PA).

By Henry Saker-Clark, PA City Reporter

The UK’s biggest-selling recipe box business has secured £30 million in new funding as it seeks to tackle global rivals such as HelloFresh.

The funding round, which was led by private equity firm Perwyn, takes the overall investment in the company to more than £100 million since it was founded in 2012.

It swiftly follows an £18 million funding round by the meal kit business in January part led by fitness guru Joe Wicks.

Gousto, which has also received funding from Unilever Ventures, has been one of a number of start-ups driving the growth of the rapidly expanding UK meal kit sector.

Gousto send boxes of ingredients, alongside recipe cards of how to cook meals, direct to time-starved customers in search of cooking inspiration.

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Recipe box firm Gousto has secured more than £100 million in funding since it was founded in 2012 (PA)

It offers customers more than 40 different recipes each week, with the ability to deliver meal boxes seven days a week.

The latest funding round will be used to drive recruitment, with Gousto looking to hire more than 100 technology staff by 2022, building on its team of 80 currently based in London.

Timo Boldt, chief executive officer and founder of Gousto, said: “Our vision has always been to be the UK’s best loved way to eat dinner. Today’s funding from Perwyn is testament to the complete confidence in our ability to do this.

“We are relishing the next stage in Gousto’s evolution, investing in innovative technology to allow us to offer the most choice, the most varied delivery options, the best quality meals that arrive in the shortest lead time, for the lowest price.”

Meal kit businesses have continued to secure big funding rounds recently, such as health-focused UK competitor Mindful Chef which received a £6 million boost earlier this year.

But questions remain over profitability in the sector, with listed global players HelloFresh and Blue Apron both seeing their share value slump over the past year after posting heavy losses.

Gousto’s parent company SCA Investments delivered a £13.4 million pre-tax loss off a £23.3 million turnover for the year to December 2017, in its most recently filed set of results.

Andrew Wynn, founder and managing partner of Perwyn, said: “We are delighted to be making this investment and joining the exciting journey that Gousto is on.

“We have been highly impressed with Timo and the team’s entrepreneurial drive and demonstrated success to date.”

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