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Gousto

Gousto Raises $41M for High-Tech Meal Kit Business

London, UK-based Gousto announced today it has raised another £33 million (~$41 million USD) for its meal kit subscription service, according to a press release sent to The Spoon. The round was led by Perwyn, with participation from BGF Ventures, MMC Ventures and online fitness guru Joe Wicks. It brings Gousto’s total funding to $179 million.

The new funds will go towards further developing Gousto’s technology, which is a huge component of both its customer interface and back-end logistics. On the consumer-facing side, Gousto uses an AI-powered personalization tool to recommend the most relevant meals to customers, who can select from over 50 recipes each week. Customers can choose a 2-person box or a family-size box, with recipes ranging from around $30 to $60, depending on the size of the box. According to the press release, Gousto currently delivers over 4 million meals to 380,000 U.K. households each month.

Behind the scenes, Gousto uses AI to automate parts of its supply chain and optimize overall logistics. The company also plans to launch a Next Day delivery service and build out its tech team over the coming months. 

If fundraising and headcount growth sounds a little out of place in today’s troubled economic times, remember that Gousto is a meal kit company whose primary goal is to serve people in their homes. The UK, where the service is available, is currently on lockdown in response to coronavirus that’s set to be extended until early May. That makes for a plenty of potential customers where a service like Gousto is concerned. The company told TechCrunch that demand for its business “has spiked upward” in recent weeks. In particular, Gousto has seen a 28 percent increase in family-style boxes. 

All that said, if you’re hoping to become a new Gousto customer, you’ll have to wait. A note on the Gousto website says the company is not accepting orders from new customers at this time, due to “extremely high demand.” There’s no word of how long that will last. Presumably, the new funding round and corresponding plans to increase headcount and tech development will help Gousto better reach the high demand for meal kits that will be around for some time.

Tech-centric Meal Kit Company Gousto Raises £30M in Fresh Funds

London, UK-based meal kit company Gousto announced this week it has raised a £30 million ($37.6 million USD) Series F funding round led by UK private equity investment firm Perwyn, with participation from existing investors BGF Ventures, MMC Ventures, Canaccord Genuity, and Unilever Ventures. The round also includes investment from British Instagram star Joe Wicks, better known as The Body Coach. This round brings Gousto’s total funding to $137.7 million.

Gousto’s meal kits — or “recipe boxes,” as they’re called in the UK — focus on healthy ingredients and more sustainable eating habits (hence Joe Wicks’ involvement). The service offers subscription plans for everything from vegetarian and plant-based diets to boxes for those who just want a healthier take on standard comfort foods. Users sign up via the app or website, choose a plan, and get pre-portioned ingredients delivered to their door with corresponding recipes each week. The company claims to be delivering 1.5 million meals per month in the UK. Price-wise, the service is actually a little cheaper than its main UK competitor HelloFresh: a four-person box with four recipes per week breaks down to £2.98 per serving, compared to £3.44 per serving from HelloFresh.

The company is also intensely focused on using tech to make meal kit logistics more efficient and also offer customers more choice. The company uses a public-facing, AI-powered personalization tool to make more relevant recommendations to individual customers. “We have been using the technology since our founding, and it powers everything from the recipes that customers see on our website to how boxes are prepared in our Picking Hub,” company CEO, Timo Boldt, wrote in a blog post last year. He also claimed, in a separate interview, that that 40 percent of the meals Gousto sells are recommended by AI. The company also uses AI on its back end, to automate the supply chain, as well as a forecasting.

Sustainability is the company’s other major focus area. On its website the company says most of its packaging is fully recyclable, and that it is looking for more sustainable ways to replace the few plastics it uses in the subscription boxes. That’s particularly important in the UK, where new controls are being introduced in an effort to drastically cut down on single-use plastics.

Unlike other meal kit companies, Gousto won’t head to the grocery aisle any time soon. Last year, HelloFresh started selling meal kits in grocery stores in addition to offering a subscription business. But Boldt has been vocal about his desire for Gousto to be an alternative to the grocery store, rather than another piece of its inventory.

Gousto told AgFunder this latest investment round will go towards further building out its technology side of the business, including hiring over 100 tech employees by 2020.