Local milkman collects US investment to sustain its green growth
A local milk round service which started in Colne with four friends and a truck has now attracted investment from a powerhouse US company.
The Modern Milkman, the local sustainable grocery business that offers doorstep grocery delivery in return and reuse packaging without single-use plastics, has announced the completion of a funding round led by global venture capital and private equity firm Insight Partners.
Existing investors ETF Partners and Serial Investor Simon Murphy also participated in the round.
The Modern Milkman was founded with a mission to reduce plastic waste.
The funding will be used to increase research and development, as well as support the business’ continued growth in the UK. The investment will be used to expand the team to enable The Modern Mikman to develop new ways to package fresh groceries in return and reuse packaging. The expansion will also allow for further investment in fresh technology.
Simon Mellin, founder and chief executive at The Modern Milkman, said: “We are focused on meeting the needs of consumers that are increasingly aware of sustainability issues and expect the businesses they engage with to be passionate about the same issues that they are.
"Rapid expansion has allowed us to make sustainable choices convenient and accessible to all. Our operational excellence, commitment to customer-centricity and an advanced digital platform has allowed us to capitalise on the radical shifts in consumer demand, and we are delighted to have one of the world’s leading VCs recognising our potential.”
The past year has seen consumer shopping habits change quickly, accelerating demand for grocery delivery. Coupled with increasing expectations for more sustainable options, The Modern Milkman has grown rapidly, resulting in a revenue increase of 1000% in 2020. Since launch, the company has helped reduce more than 187 tonnes of single-use plastic waste, which is equivalent to over 31,000 wheelie bins of plastic saved.
Jeff Lieberman, managing director at Insight Partners, said “Consumers are reassessing their consumption, and they expect the businesses they buy from to help them on that journey. The Modern Milkman combines a focus on great customer experience with a business model that is suited to significant expansion to meet the needs of customers across the UK and beyond, and we are delighted to be supporting the company on the next stage of its growth.”
As part of the investment, Brad Fiedler, Senior Investment Associate at Insight Partners will be joining Modern Milkman’s Board of Directors.
Tomer Strikovsky from ETF Partners said “The Modern Milkman’s growth is due to to the team’s ability to meet rapidly changing consumer demands. We are delighted to be further involved in the company as it continues to help consumers be more sustainable.”