Our investment in Farmdrop: Supporting a fresh food revolution!
Farmdrop, the online grocery platform that connects farmers and producers directly with local customers, makes us all feel good about what we do.
Investing in ambitious founders who are using technology to disrupt large sectors is our job. But when those companies are also profoundly transforming a facet of people’s lives, making them better, healthier and more sustainable, we are thrilled.
The overall grocery market in the UK alone is worth £178B. And while, today, the ethical foods market (organic and sustainable producers) is only a fraction of that, at £9B, it is also the fastest growing.
Online grocery shopping has also exploded globally, with particularly rapid adoption in the UK. Although the proportion of British shoppers buying their food online continues to grow – with the market set to double in value by 2020 to £17.2bn – online grocery shopping remains relatively underpenetrated at around 5% of total sales.
In a world where convenience is king & eating healthy should be everyone’s priority, Farmdrop is well-positioned to solve this problem and help us eat better and fresher than the incumbent supermarkets. Farmdrop’s food is ‘Harvested-to-order’ meaning it is 5x fresher than supermarkets because it never sits in a warehouse or on a shelf. Combining this revolutionary approach with next day delivery, complete with a one hour drop off window chosen by the shopper, all adds up to equal zero food waste!
But it’s not just consumers who get a better and fresher product, Farmdrop also looks after our farmers too. By flipping the traditional supermarket economics upside down, and cutting out the middlemen, Farmdrop gives farmers 75% of the final retail price. This is roughly double what they would receive from a supermarket, so they can continue to focus on what they do best – growing the highest quality food. And consumers know precisely which farm that high quality food has come from when it arrives on their doorstep.
We are not the only ones who believe in this fresh food revolution – sales at Farmdrop have increased by over 600% since January 2016.
That’s why today we are excited to announce that we are leading Farmdrop’s £7 million Series A funding round, and we are looking forward to working with their team to expand their offer across the UK and change the face of Britain’s food supply chain.
At Atomico, we are proud to be supporting the best local, sustainably-grown, fresh food. We trust Farmdrop to feed our families. If you haven’t tried it yet, what are you waiting for?
Vive la révolution!
— TechCrunch (@TechCrunch) April 23, 2017