Motatos accelerates international expansion with €24m funding round led by Blume Equity
Motatos, the Swedish-based D2C e-commerce business tackling global food waste, has today announced a raise of €24m, in a round led by Blume Equity with support from existing investors. This follows the Series C round earlier this year, bringing total funds raised to €95 million. This funding will be used to accelerate international expansion, building on the strong momentum the business is experiencing across Europe. Motatos currently operates in Sweden, Finland, Germany, and Denmark.
Motatos was set up in Sweden in 2014 by founders Ulf Skagerström, Erik Södergren, and Karl Andersson, in response to the global issue of food wastage. Approximately one-third of food produced for human consumption is lost or wasted globally, according to the Food and Agriculture Organization of the United Nations (FAO).
Motatos allows consumers to purchase food, grocery, and general household items which would otherwise be thrown away by FMCG producers. Factors such as overproduction, incorrect packaging, seasonal trends, and short expiry dates all contribute to a surplus of items which cannot be sold in time. Motatos saves these products, selling them at low-cost to consumers online, and delivering directly to customers’ doorsteps. The Motatos product range is wide and varied, ranging from popular pantry items such as breads and jams, to beauty and health products, pet foods, and games and toys. Since founding, Motatos has saved over 25,000 tonnes of food from being wasted.
Motatos plans to use this round of funding to fuel its growth in current markets, as well as begin work on launching in new markets across Europe, such as the UK. Across Europe 88 million tonnes of food is wasted each year. Motatos’ goal is to dramatically reduce this and the 10% of GHG emissions associated with food loss and waste globally. The company will also continue to build out its own brand of By Motatos products, providing its customers with sustainable and affordable pantry basics throughout the year.
Motatos’ CEO Karl Andersson comments:
“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. We are extremely well-positioned to continue our international expansion and we look forward to working alongside Blume Equity to achieve this.”
Michelle Capiod, Co-Founding Partner at Blume Equity, confirms the firm’s decision to finance Motatos is closely aligned with the firm’s mission to aid sustainable development:
“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: Matsmart-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. We have chosen to back this visionary team as their mission is closely aligned with ours at Blume Equity – to support inherently impactful businesses that are transforming our food and health systems.”
Sir Dave Lewis, former CEO of Tesco and senior advisor to Blume Equity observes:
"Food waste is both a major environmental and social issue, which needs to be addressed. It is great that Blume Equity is helping to drive more sustainable consumption in the European food ecosystem".
Clare Murray, Co-Founding Partner at Blume Equity, adds:
“As consumers become more aware of the environmental footprint of our food systems, businesses are recognising the importance of incorporating sustainability into their core operations. Karl and the Matsmart-Motatos team are supporting a more circular economy by saving food that would otherwise go to waste, as well as enabling greater access to high quality food at affordable prices.”
Many of Matsmart-Motatos’ current investors have also participated in the funding round alongside Blume Equity, including SEB Private Equity and Gullspång Re:food invest. Law firm Setterwalls Advokatbyrå provided legal services and advice on the transaction.
For more information, please contact:
Hanna Thofelt Lindström, Head of Communications
Email: hanna.thofelt.lindstrom@motatos.com ,
Phone: +46 76-316 12 07
About Motatos:
Motatos is the fast-growing impact D2C e-commerce battling global food waste by driving change within the food industry. Motatos sells groceries 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 four markets: Sweden, Finland, Norway, and Germany.
Motatos’s revenue run rate is €70 million and the company has since it was founded raised €95 million in capital from outside investors. Among others, Motatos is backed by Blume Equity, Gullspång Re:food Invest, SEB Private Equity, Novax, Ingka Group (IKEA), LeadX Capital, Norrsken Foundation and Northzone.
About Blume Equity:
Blume Equity (www.BlumeEquity.com) is a growth equity advisory firm focussed on partnering with technology-enabled companies that are transforming our food and health systems. Co-founded by Eleanor Blagbrough, Michelle Capiod and Clare Murray, Blume Equity partners with entrepreneurs across Europe who are solving some of the biggest challenges of our time to create a more sustainable world.
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