Online grocery platform Farmdrop has secured £7 million in funding to expand and develop its offer.
Farmdrop was set up in 2014 to connect farmers, growers and producers directly with local customers, using a mobile app to connect both ends of the chain. Founder Ben Pugh claims that by cutting out the middleman it can pay producers 75 per cent of the final retail price, and offer consumers produce much fresher than in supermarkets.
The company raised £7m with the help of Venture capital firm Atomico, with new investors including Nigel Wray, businessman and chairman of Saracens rugby club. Other high-profile figures to have previously invested in the business include Zoopla founder Alex Chesterman and Asos co-founder Quentin Griffiths.
The cash will be used to improve the overall customer experience, develop new technology for farmers to manage their own inventory, and launch new distribution hubs outside of London, with one slated to open in Bristol later this year.
Sales at Farmdrop have increased by over 600 per cent since it raised £3m in seed money in January 2016 and it currently has annual revenues of £3m. It launched a next day delivery option last month in the latest stage in its development.
Pugh said: 'Farmdrop has created a convenient and flexible grocery service with a fraction of the capital available to our competitors. With this latest investment, and the new expertise on board, we can dramatically improve the customer experience and start to expand to other cities across the UK.
'There is also huge uncertainty in the farming industry after Brexit, and our expansion will give many smaller British producers the option of a more profitable route to market.'
No comments yet