The Swedish e-commerce store Matsmart, meaning "food smart", recently completed their latest investment round at €3.2 million (30M SEK). Matsmart's valuation is now at €12.5 million and the company only had a revenue of €2.7 million 2015.
Matsmart focuses on minimizing food waste and seems to have found a great business model. They buy up large quantities of products that are close to their best before date and products that might be wrongly labelled or something else that would otherwise lead to them being discarded.
As one third of all food produced is said to be wasted, or thrown out, Matsmart instead wants to sell it online at a very low price, compared to the ordinary retail price.
Working With Strong Growth
How well is this model working you might ask? Well from 2014 to 2015 the company grew roughly 860 percent. Which might be why investors are valuing the company at almost 13 million euros at this early stage. We asked one of the founders, Karl Anderson, what the company is planning this year.
What do Matsmart have planned in time to come?
- Right now, we are working to manage our growth. But we will continue to grow in Sweden, but also looking at launching internationally, said Karl Andersson, CEO at Matsmart, to Ecomony.com.
Jessica Nilsson, co-founder of the online food service HelloFresh and now investment manager at venture capital firm Northzone, is now part of the management board at Matsmart.
- We are only at the beginning of the e-commerce revolution when it comes to food and groceries. Matsmart has found a winning concept that offers consumers the opportunity to find bargains, and also reduce food waste, she said.
Northzone, known for investing in Spotify, was one of the companies in the latest investment round valuing Matsmart at €12.5 million.
- With their clever business model and experienced team, we believe strongly in what they can accomplish in the Swedish and international markets, said Jessica Nilsson.