Gousto raises further £30m for new technology investment

UK recipe box company Gousto has secured an additional £30 million through its latest funding round, and it plans to use it to ramp up its technology investment.

The latest investment round was led by private equity firm Perwyn, and takes the total funds raised by Gousto to over £100 million since its inception in 2012. Existing investors in the business include BGF Ventures, MMC Ventures, Canaccord Genuity, Unilever Ventures and TV presenter and author Joe Wicks, who is also known as The Body Coach.

Gousto, which delivers fresh ingredients and recipes to subscribers throughout the week, said it plans to expand its technology footprint by hiring over 100 technology employees by 2022, more than doubling its existing London-based tech team of 80. The business also revealed it wants to continue to invest significantly in automation to enable more orders to be made with the help of artificial intelligence.

The company’s unique selling point in what is a crowded grocery marketplace is that its business model is effectively built on using data to learn about its customers and recommend relevant meals. It also targets zero food waste through its operations.

Early on in its journey it built a data engine to tag every ingredient and recipe in order to develop a network understanding of what its subscribers do and do not like. CEO and founder, Timo Boldt, previously told Essential Retail that its subscription model enables Gousto to get to know its customers’ tastes, and then shape its proposition accordingly.

“Our vision has always been to be the UK’s best loved way to eat dinner,” he said.

“Today’s funding from Perwyn is testament to the complete confidence in our ability to do this. In the busiest of worlds, consumer shopping behaviours are rapidly changing.”

He added: “Busy families increasingly have less time for the “big shop”, but still want to cook differing, quality meals and maintain a healthy, balanced diet."