Online food and fresh produce suppliers Farmdrop, who launched just 6 years ago, are injecting £10million into their business to develop a northern hub.
The company, backed by Skype founder Niklas Zennström, describes itself as an ‘online farmers market’, sourcing and selling 2,000 products ranging from meat, dairy, fish, organic fruit and veg, plus household supplies and larder items.
The funds, obtained from investors, will go towards expansion in the north with the construction of a hub in Manchester by the end of 2019. They also aim to double the total number of households it can deliver to over the next six months.
Ben Pugh, the ex-city broker who launched the company in 2012, 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.”
Their latest cash injection is another sign of private equity’s taste for the foodservice sector, after receiving the capital from LGT Impact Ventures, who have a ‘tech for good’ focus, and Belltown Ventures, a renewable energy investment specialist.
Venture capital firm Atomico, who led the first £7m investment in April 2017, are investing again. Niklas Zennström, Skype founder and CEO of Atomico, said: “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.”
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