Motatos, a Swedish-based startup to reduce food waste, secures funding of 24 million euros to expand the global footprint
Sweden-based Motatos, a startup trying to solve the problem of global food waste, has raised € 24 million in a new round of funding led by Blume Equity.
Existing investors SEB Private Equity and Gullspång Re: food Invest also participated in the borrowing round.
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The new round comes after a series C round earlier this year, which brings the total money raised to 95 million euros.
The company plans to use the capital to accelerate global expansion, based on the strong demand that the business is experiencing throughout Europe. After succeeding in Sweden, Germany, Finland and Denmark, Motatos now aims to curb food waste on a larger scale.
The emergence of Motatos
According to the Food and Agriculture Organization of the United Nations (FAO), about a third of the food produced for human consumption disappears or is lost.
Motatos was created with the idea of beating two flies with a hunger and preventing food waste by picking up from the superfluous and delivering it to the less privileged.
Motatos offers a platform for people to buy FMCG items that would otherwise be discarded due to reasons such as excess amount, expiration date, faulty or damaged packaging at a much lower cost than the original. Motatos also offers to deliver these FMCG products directly to their consumers’ doorstep.
Motatos offers a wide range of products, from pantry items such as bread and jam to beauty products and pet food. Since its inception, the company has prevented waste of over 25,000 tons of food and consumer products.
Use of the fund
In addition to launching in new markets across Europe, Motatos will use the funds to increase growth in existing markets.
“We are experiencing very strong momentum right now, and we are rapidly growing our European customer base among both sustainability-driven and price-conscious consumers, plus attracting the attention of investors who want to support companies that are in line with sustainable development goals,” CEO Karl Karl Andersson said.
Every year, 88 million tonnes of food are thrown away in Europe. Motato’s goal is to drastically reduce this and the 10% of greenhouse gas emissions associated with food loss and food waste.
Through its own brand, the company will also continue to develop affordable and sustainable pantry products for customers all year round.
Michelle Capiod, Co-Founding Partner at Blume Equity, says that Motato’s goals are in line with theirs – to support powerful companies that change food and health systems.
“We are pleased to partner with Karl and the team to accelerate Motato’s international expansion. This team has built a highly scalable platform to address a major global challenge in the food system: Motatos is helping food companies prevent waste from being wasted by: sell it online to consumers at heavily discounted prices.It’s a triple win: for suppliers, for consumers and for the planet, says Capiod.
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