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Posted on August 15, 2018 by staff

Growth on the menu as food waste app bags £9.5m

A Swedish technology start-up on a mission to reduce food waste across Europe is looking to partner with more UK supermarkets after raising $12 million (£9.46 million).

Karma launched in Stockholm just under two years ago and made its debut in the UK in early 2018.

The company’s founders – Elsa Bernadotte, Hjalmar Ståhlberg Nordegren, Ludvig Berling and Mattis Larsson – set out to work with restaurants and supermarkets to sell unsold food at a discount through its smartphone app.

The investment round was led by Swedish investment giant Kinnevik, with other backers including Bessemer Venture Partners, appliance manufacturer Electrolux and global VC firm e.ventures also participating.

The money will help the start-up grow its team to over 100 and expand internationally.

“We are delighted to announce this investment which will accelerate our mission to reduce food waste globally,” said co-founder and CEO Hjalmar Ståhlberg Nordegren.

“We have known the team at Kinnevik for a long time, and they have the long-term perspective and operational expertise that we were looking for in partners.

“We are also delighted to be working with two new top-tier partners in Bessemer and Electrolux who bring unparalleled expertise in their respective fields.”

Since launching in London in February, Karma has already expanded to over 400 restaurants in the UK including major brands such as Aubaine, Polpo, Caravan, K10, Taylor St Barista’s, Ned’s Noodle Bar and Detox Kitchen.

In addition to growing its team, Karma will also use the funds to continue developing its product range and to expand to new markets.

The company plans to expand from 35 people based in Stockholm today to over 100 across five markets by the end of next year and over 150 by mid 2020.