Modern Milkman, a grocery delivery startup that uses data analytics to map out milk rounds, has now raised a total of £50m after closing a Series C funding round to fuel global expansion.
The Colne, Lancashire-headquartered company delivers milk along with groceries such as eggs, butter, bread, fruit and vegetables.
It is aiming to tackle plastic waste with its returnable glass milk bottles – an old business model that Modern Milkman has brought into the 21st century with a smartphone app to track customer orders.
The Series C funding round was led by previous backers Insight Partners and ETF Partners. The round includes a £2.25m investment from Manchester-based VC Praetura Ventures, announced back in July.
Branding and packaging firm Avery Dennison and “several” angel investors also provided capital.
Modern Milkman said it will use the new cash to use radio frequency identification inlays and tags to track the reusable glad bottles.
Founded in 2018 by Simon Mellin and four friends, Modern Milkman now has 16 hubs across England and claims its service has saved over 55 million plastic bottles.
Modern Milkman says it expects to break even in the UK market in 2022 and achieve year-on-year revenue growth of “over 100%”.
Achieving breakeven would set it apart from other q-commerce startups that rose to prominence during the pandemic yet have struggled to find profitability.
“In the current macro-economic environment, it is not obvious at all that a consumer scaleup business is able to deliver such profitable growth,” said ETF Partners’ Tomer Strikovsky.
Modern Milkman is planning to launch a crowdfunding campaign at the end of November on Crowdcube.
“We founded Modern Milkman on the basis that being sustainable should be convenient and we’re delighted to have secured the support of so many incredible businesses to further accelerate our eco-ambitions and empower the next phase in sustainable technology,” said Simon Mellin, CEO and Founder at Modern Milkman.
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