BGF Ventures backs Gousto

BGF Ventures has invested £3m in recipe box delivery company, Gousto, as its meals gain nationwide popularity.

This is the first investment for the £200m fund since it opened its doors to early stage technology companies in the autumn of this year. Simon Calver, a Partner in BGF Ventures and former CEO of LOVEFiLM - one of the UK’s most successful online subscription based businesses - will join the board of the company.

BGF Ventures has taken part in a £9m funding round, joining Gousto's existing investors MMC Ventures, Unilever Ventures and the Angel Co-Fund. TV presenter Andi Peters is also an investor, having been introduced to Gousto by his friend, star rugby player Jonny May, who converted him into a loyal customer after raving about the service. In total, Gousto has raised £20m investment since it was founded in 2012. With the additional funding, the company will strengthen its team of chefs and nutritionists, broaden its sales and marketing efforts to reach even more customers, and continue to introduce a greater choice of meal and delivery options.

Gousto is one of the UK’s fastest growing technology-based companies. Last month, it delivered more than 30,000 meals to homes throughout the UK, up nearly six times on the same time last year. Earlier this year, the business launched a free iOS app where customers can plan, order and arrange delivery of meals. In little over three years, Gousto has achieved double Tesco’s inventory turnover, four times Ocado’s revenues on a per SKU basis, and double the average supermarket gross margin due to its zero waste rate and direct sourcing relationship with farmers, which cuts out the middlemen.

Gousto sends fresh ingredients and chef-designed recipes - which can be prepared and cooked in just 30 minutes - straight to the door of time-poor Brits. Together with step-by-step recipe cards, Gousto creates ten new meals every week. According to customers, discovering new recipes is the primary motivation for subscribing, with ease and convenience a close second. Moreover, the service takes the hassle away from supermarket shopping and significantly cuts down on food wastage by giving customers the right quantity of ingredients for each recipe.

“Timo and the team have a built a fantastic product and are already demonstrating that Gousto has the platform and systems to meet rapidly increasing customer demand," said BGF Venture's Simon Calver. "I firmly believe that they have a capability and ambition to become the leading brand in this fast growing and disruptive new sector".

Gousto's founder and CEO, Timo Schmidt said, "This is an exciting time for Gousto customers. The new funding will be used to drive amazing product improvements in 2016. With the help of the team and our farmers, we have built a scalable platform that offers truly incredible value to customers. I am pleased to have the continued backing of our early investors, and to welcome BGF Ventures on board."

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