Business

Recipe box firm Gousto secures £30m investment

Recipe box business, Gousto has secured £30 million in new funding

THE UK's biggest-selling recipe box business, Gousto has secured £30 million in new funding as it seeks to tackle global rivals such as HelloFresh.

The funding round, which was led by private equity firm Perwyn, takes the overall investment in the company to more than £100m since it was founded in 2012.

It swiftly follows an £18m funding round by the meal kit business in January part led by fitness guru Joe Wicks.

Gousto, which has also received funding from Unilever Ventures, has been one of a number of start-ups driving the growth of the rapidly expanding UK meal kit sector.

Gousto sends boxes of ingredients, alongside recipe cards of how to cook meals, direct to time-starved customers in search of cooking inspiration.

It offers customers more than 40 different recipes each week, with the ability to deliver meal boxes seven days a week.

The latest funding round will be used to drive recruitment, with Gousto looking to hire more than 100 technology staff by 2022, building on its team of 80 currently based in London.

Timo Boldt, chief executive officer and founder of Gousto, said: "Our vision has always been to be the UK's best loved way to eat dinner. Today's funding from Perwyn is testament to the complete confidence in our ability to do this.

"We are relishing the next stage in Gousto's evolution, investing in innovative technology to allow us to offer the most choice, the most varied delivery options, the best quality meals that arrive in the shortest lead time, for the lowest price."

Meal kit businesses have continued to secure big funding rounds recently, such as health-focused UK competitor Mindful Chef which received a £6 million boost earlier this year.

But questions remain over profitability in the sector, with listed global players HelloFresh and Blue Apron both seeing their share value slump over the past year after posting heavy losses.

Gousto's parent company SCA Investments delivered a £13.4 million pre-tax loss off a £23.3 million turnover for the year to December 2017, in its most recently filed set of results.

Andrew Wynn, founder and managing partner of Perwyn, said: "We are delighted to be making this investment and joining the exciting journey that Gousto is on.

"We have been highly impressed with Timo and the team's entrepreneurial drive and demonstrated success to date."

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