Discount grocery start-up Motatos raises £33m for UK expansion

1 Comment

Sweden-based discount ecommerce grocer Motatos has raised £33m in its latest round of seed funding with plans to expand its operations in the UK and Germany.

Motatos has now raised £122m in total, with the latest round earmarked for expansion into international markets as the cost-of-living crisis around the globe continues.

The online discount specialist was backed by existing investors such as SEB Private Equity and Exor Capital.

The retailer, which launched in the UK earlier this year, claims to be 60% cheaper than Aldi and Lidl by offering shoppers reduced prices on excess inventory from a range of wholesalers and distributors.

The brand, known as Matsmart in Europe, was founded in 2014 as a way to fight food waste by limiting the amount that ends up in landfills. Last year, it had revenues of £59m and is on track to hit sales of £86m this year.

“Taking care of the resources let into production – for the climate’s and the consumer wallet’s sake – is not only common sense but is really very urgent,” said founder and co-chief executive Karl Andersson.

“Ultimately, this injection of capital allows us to accelerate the sustainable shift in the food and retail sectors in major European markets.”