Matsmart-Motatos closes oversubscribed capital round led by circular specialist investor Circularity Capital
Matsmart-Motatos, the leading European D2C e-commerce retailer of overstock dry foods and consumer products, has announced the successful completion of a €40m growth capital round led by Circularity Capital, with additional support from existing shareholders.
The capital raised will primarily be used to grow the business in the German and Nordic regions. As the automation of the Nordic warehouse has driven increased operational capacity and efficiency, Matsmart-Motatos now plans to replicate similar systems at its German facility.
Matsmart-Motatos CEO Peter Beckius commented: “Our coming five year plan includes significant growth in the Nordic and DACH regions and our most important investment ahead will be the automation of the German warehouse operations.”
By procuring and reselling overstock goods that traditional retailers cannot buy, Matsmart’s business model is designed to directly tackle the issue of waste in the food supply chain. Since founding, Matsmart-Motatos has recirculated over 60 000 tonnes of food and consumer products, preventing widespread environmental impacts while simultaneously solving a structural commercial challenge for FMCG suppliers. Today, Matsmart-Motatos is the leading food overstock retailer in the Nordics and the fastest growing market participant in Germany.
Peter Beckius continued: "Consumers are becoming increasingly conscious of the environmental impact of their daily lives and many of us also see the need to spend very cautiously. We offer our customers sustainable shopping that is fun, affordable and accessible to all and naturally this resonates well with a lot of people.”
According to data from the Impact Investing Global Market Report 2023 the sector grew 17.8 percent between 2022 and 2023, emphasising that those companies generating measurable, positive social and environmental impact, alongside a financial return, are increasingly seen as attractive investment opportunities. Matsmart-Motatos is the perfect example of a fast-growth impact business, delivering significant value across the European food manufacturing supply chain.
Karl Andersson, Matsmart-Motatos Founder commented: “In our mission to change the food system, we need good partners. Ten years ago, we set out to prove that it is possible to successfully scale a business that addresses a central sustainability challenge in the food industry - one that is responsible for 10 percent of the global greenhouse gas emissions. A decade later, we have a foothold in five markets and we are the first European grocery ecommerce business to reach profitability in our home market. As we are now accelerating our pace further, we’re excited to be working with Circularity Capital given their track record in helping circular businesses to grow and thrive. Our purposes are closely aligned and we see that the Circularity team can offer valuable guidance on our growth journey ahead.”
Andrew Shannon, Partner at Circularity Capital and board member of Matsmart-Motatos, added: “Matsmart-Motatos has already built a market leading position in a fast-growing industry addressing a major inefficiency in the global food supply chain. The company has a robust platform that is ready for further scale and a dedicated team that has proven its ability to execute. We look forward to working closely with the team in executing this exciting phase of its strategic growth plan centred around continued growth in Germany and other European markets.”
Many of Matsmart-Motatos’ current investors have participated in the growth capital round alongside Circularity Capital and one more new investor: SevenVentures. SevenVentures is the investment arm of ProSiebenSat.1 and part of the Group's Commerce & Ventures segment. Its investment focus is high-growth B2C companies and it will support Matsmart-Motato’s growth in the German speaking region.
Law firm Setterwalls Advokatbyrå provided legal services and advice and the strategic advisory firm PJT Partners also supported in the transaction.
For more information about Matsmart, visit: www.matsmart.se / www.motatos.com. To find out more about Circularity Capital, visit www.circularitycapital.com.
ENDS
Hanna Thofelt Lindström
Head of Communications and Impact
+46763161207
hanna.thofelt.lindstrom@motatos.com
About Circularity Capital:
Circularity Capital is a specialist private equity firm investing in European growth stage businesses in the circular economy. Circularity Capital was founded as an independent investment manager in 2015, with the specific intention to deliver value for investors by investing into growth and innovation in the circular economy. www.circularitycapital.com.
About Matsmart-Motatos
Across the globe, food production is the cause of more than one third of all greenhouse gas emissions, yet according to the FAO, one third of all food grown fails to reach the kitchen table. Matsmart-Motatos is the fast-growing impact D2C e-commerce business battling global food waste by driving change within the food industry. Matsmart-Motatos sells food and consumer products online, helping the big producers of FMCG offload their surplus inventory, reducing waste in the value chain and making their businesses more sustainable. Launched in Sweden in 2014, the company currently operates in five markets: Sweden, Finland, Denmark, Germany and Austria.
Matsmart-Motatos’s total revenue in 2022 amounted to €80 million and the company’s current revenue run rate is €100 million. The company is supported by many leading investors including Circularity Capital, SEB Private Equity, Northzone, Edastra, LeadX Capital, Exor Capital, Gullspång Re:food Invest, Blume Equity, Norrsken VC and Seven Ventures.
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