Sweden-based Motatos, a startup that is trying to solve the problem of global food waste, has raised €24M in a new round of funding led by Blume Equity.
Existing investors SEB Private Equity and Gullspång Re: food Invest also participated in the funding round.
The new round comes after a Series C round earlier this year, bringing the total funds raised to €95M.
The company plans to utilise the capital to expedite worldwide expansion, building on the strong demand the business is experiencing across Europe. After succeeding in Sweden, Germany, Finland, and Denmark, Motatos now aims to curb food wastage on a larger scale.
The Inception of Motatos
According to the Food and Agriculture Organization of the United Nations (FAO), approximately one-third of the food produced for human consumption is dissipated or lost.
Motatos was conceived with the idea to kill two birds with one stone-curb hunger and prevent the wastage of food by picking up from the plentiful and delivering it to the less-privileged.
Motatos offers a platform for people to buy FMCG items that would otherwise be thrown away because of reasons like surplus amount, expiration, incorrect or damaged packaging at a much lower cost than its original. Motatos also offers to deliver these FMCG items directly to the doorstep of its consumers.
Motatos offer a wide range of products, from pantry items such as bread and jams to beauty products and pet foods. Since its inception, the company has prevented wastage of over 25,000 tonnes of food and consumer products.
Fund usage
In addition to launching in new markets across Europe, Motatos will use the funds to boost growth in existing markets.
“We’re experiencing very strong momentum right now, rapidly growing our European customer base amongst both sustainability-driven and price-conscious consumers, plus attracting the attention of investors looking to support businesses that are aligned with the Sustainable Development Goals,” CEO Karl Andersson said.
Each year, 88 million tonnes of food in Europe are wasted. Motatos goal is to drastically reduce this and the 10% of GHG emissions associated with food loss and waste.
Through its own brand, the company will also continue to develop affordable and sustainable pantry essentials for customers all year long.
Michelle Capiod, Co-Founding Partner at Blume Equity, says that Motatos’ goal is aligned with theirs – to support inherently impactful businesses that are transforming the food and health systems.
“We are thrilled to partner with Karl and the team to accelerate Motatos’ international expansion. This team has built a highly scalable platform to address a major global food system challenge: Motatos helps FMCGs to prevent surplus food from going to waste by selling it online to consumers at heavily discounted prices. It’s a triple win: for suppliers, for consumers, and for the planet,” Capiod said.
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