Local grocery delivery service Farmdrop has announced a new £10m Series B investment.
Farmdrop acts as an online farmer’s market, allowing you to order fresh produce from local suppliers. The company now sources and sells 2,000 products ranging from meat, dairy, fish, organic fruit and veg, plus household supplies and larder items.
This latest investment round was led by new investors LGT Impact Ventures, who have a ‘tech for good’ focus, and Belltown Ventures, a renewable energy investment specialist. This round brings the total amount raised by the online grocer to over £20m.
The fresh cash will be used to fund a new wave of expansion following the launch of a second hub in Bristol and Bath in September 2017, with a goal of building a northern hub in Manchester by the end of 2019. Farmdrop also aims to double the total number of households it can deliver to over the next six months.
Farmdrop was launched by ex-city broker Ben Pugh in 2014. He said: “Farmdrop is winning over the hearts and minds of new customers and farmers every week. No one else in grocery combines quality, convenience and transparency like we do. I’m incredibly excited that many more people will soon be able to use Farmdrop thanks to this latest investment.”
Venture capital firm Atomico, who led the £7m Series A investment in April 2017, have also invested in this Series B round. Niklas Zennström, Skype founder and CEO of Atomico, commented on the decision to invest: “What we find so compelling about Farmdrop is the way they’re using technology for good. By creating a direct route to market for farmers, Farmdrop is helping to create a healthier and more efficient supply chain.
“We’re proud to invest in such a fantastic team and are excited about helping them scale their innovative e-grocery platform,” he added.
Farmdrop positions itself as an environmentally conscious brand, and states that 80% of its fresh produce is sourced directly from 208 sustainable farmers and independent food makers. It also uses electric vans to make deliveries and advertises high animal welfare standards.
The company also claims to have paid out over £5m to small-scale, British farmers since 2014 and say it is on track to achieve £10 million in annualised revenues before the end of 2018.