A fast-growing sustainable grocery start-up is to create more than 1,000 jobs in the UK.
The Modern Milkman offers doorstep grocery delivery which reuses packaging, without any single-use plastics.
Founded in Colne, Lancashire in 2018 and inspired by Blue Planet, the firm now offers delivery of milk, juice, eggs, butter, bread, fruit and vegetables to Lancashire, Yorkshire, Greater Manchester, Stafford and Merseyside and has plans to expand further around the UK and internationally.
It currently employs 150 head office staff and counts 300 milkmen – and women – among its network, with customers able to order groceries through its app and website.
Private equity firm Insight Partners led the funding round, while existing investors ETF Partners and Simon Murphy also participated.
The money will be used to further develop the firm’s bespoke tech platform and develop innovative ways to package fresh groceries following a revenue increase of 1,000% in 2020.
The startup claims it will help save 282 million plastic bottles from landfill by the end of 2024, having already helped reduce more than 187 tonnes of single-use plastic waste.
“We are focused on meeting the needs of consumers that are increasingly aware of sustainability issues and expect the businesses they engage with to be passionate about the same issues that they are,” said Simon Mellin, founder and CEO.
“Rapid expansion has allowed us to make sustainable choices convenient and accessible to all.
“Our operational excellence, commitment to customer-centricity and an advanced digital platform has allowed us to capitalise on the radical shifts in consumer demand, and we are delighted to have one of the world’s leading VCs recognising our potential.”
Jeff Lieberman, Managing Director at Insight Partners, said: “Consumers are reassessing their consumption, and they expect the businesses they buy from to help them on that journey.
“The Modern Milkman combines a focus on great customer experience with a business model that is suited to significant expansion to meet the needs of customers across the UK and beyond, and we are delighted to be supporting the company on the next stage of its growth.”
As part of the investment, Brad Fiedler, Senior Investment Associate at Insight Partners will be joining Modern Milkman’s board of directors.