Modern Milkman – has announced it has raised £50 million in total funding after closing its Series C investment round.
The round is led by existing investors Insight Partners and ETF Partners, new top-tier investors Praetura Ventures and Avery Dennison, as well as several angel investors.
Experiencing growth of over 500% on average each year since its inception in 2018, the award-winning milkround continues to strengthen its position in the market. In 2022, the company expects not only to breakeven in the UK market but also to close the year with over 100% year-on-year revenue growth.
Recognising the vital role of data and digital technology in driving sustainability solutions across the grocery sector, Modern Milkman will use funding to increase research and development into new product innovation, pioneering technologies and achieving UK-firsts – all whilst supporting global expansion strategies.
Committed to leading the battle against plastic waste, Modern Milkman was founded by Simon Mellin and his friends four years ago. Now, working with a network of independent suppliers and proudly supporting British dairy farming, the brand boasts 16 hubs across England and has saved over 55 million plastic bottles to date – and counting.
The sizable funding acquired from existing investors Insight Partners and ETF Partners demonstrates the two firms’ continued confidence in both Modern Milkman’s business position and proposition and will help to deliver strong unit economics as well as drive continued growth. The addition of new investor Avery Dennison – innovators in the branding and packaging space – will support Modern Milkman’s ongoing sustainability efforts through the development of pioneering technology to reduce packaging waste.
Combining technology with sustainability, the brands will work together to creatively use radio frequency identification inlays and tags (RFID tags) to monitor and track the journey of Modern Milkman’s reusable glass bottles. This will be the very first time this technology has been employed to identify the end-to-end lifecycle of returnable glass bottles in the UK, ultimately reducing waste and increasing eco-efforts across the grocery sector.
Jeff Lieberman, Managing Director at Insight Partners, said on the fundraising: “We are thrilled to continue our support of Simon and the Modern Milkman team. Modern Milkman is at the forefront of combining a strong business model with an emphasis on supporting the environment, all while providing an accessible digital customer experience. We are pleased to work alongside them in the next steps of their journey.”
Tomer Strikovsky from ETF Partners commented on the fundraising, “We are delighted to continue backing Simon and the team at Modern Milkman. In the current macro-economic environment, it is not obvious at all that a consumer scale up business is able to deliver such profitable growth. I think it is a testament to the power of an eco-product which is price competitive, as well as stellar execution by a stellar team.”
Hassan Rmaile, Senior Vice President, EMENA & Global Innovation Label and Graphic Materials, Avery Dennison said on the fundraising: “Avery Dennison is committed to doing its part to reduce packaging waste, and strongly supports the development of innovations to achieve this. We believe our investment and future collaborations with The Modern Milkman can help drive new circular business models for consumers.”
Simon Mellin, CEO and Founder at Modern Milkman, said: “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. We’re looking forward to collaborating with and learning from leaders in the tech industry as we continue to revolutionise convenient grocery shopping, helping customers to be sustainable throughout a period of inflation – not only at home in the UK, but internationally too.”
Simon Mellin, CEO and Founder at Modern Milkman continues: “The future for the Modern Milkman looks incredibly exciting and we’re excited to announce that we will be introducing a crowdfunding initiative that is launching officially on 29th November. The funds invested by the public, will help accelerate the expansion of our plastic-free, return-and-reuse range as well as us to improve online customer experience to make it even easier to shop ethically. We have some very ambitious goals to reboot the milkround and embed the circular economy into the fabric of the UK, and we can’t do it alone, which is why we’re giving the nation the opportunity to invest in our exciting business.”