HelloFresh rival Gousto serves up £30m in new funding

12 July 2019, 11:17 | Updated: 12 July 2019, 14:41

One of the major British players in the fast-expanding meal-kit delivery market has been served up £30m of new funding as it intensifies its rivalry with the likes of HelloFresh.

Sky News has learnt that Gousto, which was set up in 2012, has struck a deal to raise the sum by selling shares to investors including Perwyn, a London-based family office investor.

The new capital will be used to support Gousto's expansion as it seeks to build brand loyalty in an increasingly crowded market, with rivals such as HelloFresh spending heavily on marketing.

One source said the additional sum injected into Gousto would ‎take the total raised by the company since its launch to more than £100m.

Subscription recipe-kits have become a big area of focus for technology investors at a time when significant sums of money are also being ploughed into restaurant delivery apps such as Deliveroo and Uber Eats.

Gousto, which was founded by former investment bankers Timo Boldt and James Carter‎, has seen rapid growth in revenues, although it refused to disclose any recent figures relating to its customer base or details of its journey towards profitability.

Its latest fundraising, led by Perwyn, comes only six months after a previous raise, underlining the capital-intensive nature of businesses operating in the food delivery sector.

In January, Mr Boldt told TechCrunch, a tech industry news service, that Gousto‎ was delivering more than 1.5 million meals every month.

Gousto's last round included participation from Joe Wicks, the so-called 'health‎ influencer' who has helped develop a portfolio of healthy meal recipes for the company.

Other investors in Gousto include Unilever's ventures division, BGF Ventures, Hargreave Hale and MMC Ventures.

‎One source said the latest funding had been raised at a big premium to its previous cash call, suggesting that Gousto continues to make solid progress in growing its share of the market.

Gousto declined to comment, while Perwyn could not be reached for comment.