D-Ax and Norrsken Foundation invest in Matsmart, alongside previous investors.
The funding will be used to further expansion in the Nordics and Europe.
Swedish e-commerce company Matsmart sells surplus food that would otherwise be thrown away, due to changes in branding or packaging, seasonality or short expiration dates.
In 2016, Matsmart prevented 706 tonnes of food from going to waste. The company has seen explosive growth, with yearly revenues of €20 million. Matsmart launched in Sweden in 2014, and has since then expanded to Norway and Finland.
CEO Karl Andersson comments: “With this new funding, we will continue to focus on growth. There is still a lot of work to do to solve the issue of food waste, and we see strong interest from both consumers and suppliers. We will also be looking at new markets for further international expansion.”
The new investors add strategic value to Matsmart. D-Ax is the investment arm of the Swedish Axel Johnson Group, and Norrsken Foundation, set up by Klarna founder Niklas Adalberth, focuses on social tech entrepreneurship.
Karl adds: “D-Ax has significant experience in the food and retail sectors, and invest with a long-term view, which suits us perfectly. Norrsken focuses on companies that have a positive impact on humans or the environment, and align well with our vision: a world without food waste.”
Mia Brunell Livfors, CEO at Axel Johnson comments: ”For Axel Johnson, this is a strategic investment: it’s in the food space, it’s an e-commerce proposition, it’s a low cost retailer, and it has sustainability at its core. We look forward to working with Matsmart for the long-term.”
Tove Larsson, Investment Manager at Norrsken adds: “Food waste is an important environmental issue, and we think that Matsmart are tackling it in a smart way. They are addressing the immediate issue of saving food that is going to waste, and in the long term, they are also able to influence the root causes of the problem, by helping suppliers reduce waste, and changing consumer behaviour in relation to best-before dates.”
Matsmart, which was founded by Karl Andersson, Erik Södergren, and Ulf Skagerström, has previously attracted investors such as Northzone, GP Bullhound, Edastra, Inbox Capital, the Avito-founders Jonas Nordlander and Filip Engelbert and Johan Kleber, CEO of Adlibris.