Matsmart-Motatos bags €40M for eco-friendly e-commerce expansion
Matsmart-Motatos, the Stockholm-based direct-to-consumer e-commerce retailer for surplus dry food and consumer products, has secured €40 million in an oversubscribed growth round led by Circularity Capital. The funding will fuel the company’s market expansion in the German and Nordic markets, including establishing warehouse automation systems in Germany.
Through its unique business model of purchasing and selling surplus goods that traditional retailers cannot or do not want to handle, Matsmart effectively addresses the challenges of food waste and losses in the supply chain. The company has raised a total of €129.8 million in funding, with revenue reaching €80 million in 2022 and a current run rate of €100 million.
Matsmart-Motatos CEO Peter Beckius said consumers are growing aware of the environmental impact of their daily lives and the increasing need for cautious spending. “We offer our customers sustainable shopping that is fun, affordable and accessible to all, and naturally, this resonates well with many people,” he said.
Several of Matsmart’s existing investors participated in the growth round alongside Circularity Capital and a new investor, Seven Ventures. Seven Ventures is an investment arm of German media company ProSieben, which invests in fast-growing B2C companies. It will support Matsmart’s expansion through, among other initiatives, media investments in Germany.
Cutting food waste
Matsmart-Motatos was founded in 2014 to contribute to a sustainable global food system transformation. Its business model aligns with the global sustainability target to halve food waste by 2030.
The company has a 20,000-square-metre AutoStorelager in Örebro. Powered by rooftop solar panels, the automated warehouse boasts 10,000 pallet locations and 14 loading docks. It can process up to 6,000 order lines per hour, with 149 robots working alongside the employees.
Since its establishment, Matsmart-Motatos has diverted over 60,000 tons of food and consumer products from landfills, mitigating environmental damage while addressing a persistent commercial challenge for FMCG suppliers. The company is the Nordic region’s leading food overstock retailer and Germany’s fastest-growing market player.
Andrew Shannon, partner at Circularity Capital and board member of Matsmart-Motatos, noted that the Swedish company possesses a robust platform primed for further growth and a committed team that has demonstrated its capacity for execution.
“We look forward to working closely with the team in executing this exciting phase of its strategic growth plan centred around continued growth in Germany and other European markets,” Shannon said.
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