Ecommerce brand Motatos lands €38 million to tackle growing food waste problem
Based in Stockholm and recently launched in the UK, Motatos is a startup taking on food waste through ecommerce. The Nordic team has just raised €38 million through a directed new share issue to existing shareholders.
Food waste is a growing problem, but it’s also something that each and every one of us can take ownership over. It’s something every consumer can try to address simply by changing some daily habits and making more conscious and sustainable choices. It’s estimated that currently, a third of all food produced is thrown away. It’s waste that isn’t sustainable nor is it tolerable – both the societal and environmental impacts are huge.
Disrupting the ecommerce market in order to encourage more sustainable consumption, and empower consumers with an easy and more accessible way to address food waste, Motatos has developed a simple solution and is growing fast. The startup has now just picked up a considerable investment and is set to expand.
Today, Motatos has announced a €38 million raise at an attractive uptick valuation, through a directed new share issue to existing shareholders.
The financing round has been led by SEB Private Equity, Motatos largest owner, and Exor Capital who have increased their investment substantially since the fund’s initial investment in the series C-funding round in November 2021. This brings the total funds raised to over €130 million.
Many of Motatos’ current investors have also participated in the funding round alongside SEB Private Equity including Gullspång Re:food invest, Blume Equity and Exor Group. Law firm Setterwalls Advokatbyrå provided legal services and advice on the transaction.
Maria Bilkenroth, Investment Director SEB Private Equity: “It is now a little over a year since our initial investment in Motatos and we are very pleased with the results that the team has been able to produce in that time. Motatos’ providing cost conscious consumers with sustainable choices that many can afford is something that is well aligned with our investment focus. Growth in the sustainable business sectors is vital for the circular shift to happen. We look forward to supporting the team as they continue to grow the business on the European markets.”
Tackling global food waste
Launched in Sweden in 2014, Motatos was developed by three passionate entrepreneurs with the ambition to solve one of the world’s biggest growing problems – food waste. The startup challenges the perceptions of sustainable consumption, wanting to revolutionize how people look at food waste and stimulate a change of habits.
Motatos sells groceries online, helping the big producers of FMCG offload surplus inventory, thus reducing waste in the value chain and also giving these businesses a sustainable income. The surplus food is sold on the ecommerce platform at affordable prices to customers who want to buy perfectly good food that otherwise would have been wasted. What’s more, shopping in this way can save customers a repored 60% compared to shopping with other supermarkets on well-known brands like Heinz, Cadbury, Kellogg’s and Walkers.
Karl Andersson, CEO and Founder, said: “Taking care of the resources let into production – for the climate’s and the consumer wallet’s sake is not only common sense, but is really very urgent. Ultimately, this injection of capital allows us to accelerate the sustainable shift in the food and retail sectors in major European markets.”