Thursday 16 April 2020 12:14 pm

Recipe box firm Gousto secures £33m investment as coronavirus boosts business

Recipe box firm Gousto has secured £33m in new funding from investors including celebrity fitness coach Joe Wicks, as growth in the meal-kit market has been accelerated by the coronavirus outbreak. 

The funding round was led by Perwyn, BGF, and MMC Ventures and Joe Wicks, taking the total funds raised to more than £130m in the last eight years. 

Gousto, which reported a 70 per cent year-on-year jump in revenue in the first quarter, will use the extra funding to expand its London tech team and accelerate innovation including next day delivery. 

The company is also hiring for around 100 roles at its warehouse in Lincolnshire and a second distribution centre which will open next year, as it aims to boost headcount by more than 700 by 2022. 

The funding was secured before the coronavirus outbreak, however the pandemic could accelerate growth in the sector, which was previously expected to exceed £1.5bn within the next two years.

Gousto founder and chief executive Timo Boldt said: “We continue to be laser-focused on our vision to become the UK’s most-loved way to eat dinner.”

“This additional investment is not only a validation of our track record, but it is also an endorsement of our strategic vision of the future which is rooted in investing in innovative technology to transform the way we search for, shop for, and cook our food. 

Andrew Wynn, Founder and Managing Partner at Perwyn added: “ The business has adapted quickly to continue providing an essential service to so many.

“This reaffirms the decision we took far before Covid-19, that we’re investing in the right people and a business set for even greater success.”