A Swedish start-up, Karma, is making strides in the battle against food waste by raising £9.5 million. The investment seeks to partner more with UK supermarkets.
Founded by Elsa Bernadotte and her team, Karma aims to expand its services, selling surplus food at discounted prices through an app.
Karma, a Swedish technology pioneer, recently captured attention by securing an impressive £9.5 million. This funding round was led by the investment powerhouse Kinnevik and supported by prominent figures like Bessemer Venture Partners and Electrolux.
This strategic financial leap is aimed at fortifying Karma’s mission: reducing food waste. With plans to enhance its international footprint, the funds will be channelled into team expansion and market penetration.
Originating in Stockholm, Karma launched its unique business model to combat food waste just two years ago. Its entrance into the UK market saw quick adoption within months.
The app features collaborations with restaurants and supermarkets to offer unsold food at reduced prices. This not only curtails waste but also offers budget-friendly options to consumers.
Since February, Karma has cultivated over 400 partnerships in the UK alone, including with major brands.
The alliance with Aubaine, Polpo, Caravan, and others marks a significant achievement. Such collaborations illustrate the app’s appeal and the retail sector’s commitment to sustainability.
As the company grows, it seeks to solidify these relationships, further integrating sustainable practices into mainstream retail strategies.
Karma’s leadership plans to scale up their operations from a 35-member team in Stockholm to over 100 employees across five markets by the end of the year.
Plans include not only team growth but also new market entrances, aiming for 150 employees by mid-2020. This expansion denotes a pivotal step towards becoming a key player in the global food waste battle.
Development of Karma’s technological offerings is a top priority, enhancing the app’s capabilities and user experience.
Innovation stands at the core of Karma’s expansion strategy, ensuring that technology remains a driving force behind waste reduction.
These advancements are set to refine the customer interaction process, making the app more intuitive and effective in daily operations.
Co-founder and CEO, Hjalmar Ståhlberg Nordegren, expressed optimism about the future, crediting the investment as crucial for scaling.
“We are delighted by our progress, and this investment will accelerate our mission to tackle global food waste,” said Nordegren. The company’s vision positions them at the forefront of sustainable tech solutions.
This strategic foresight is widely lauded within industry circles, and Karma’s approach sets a precedent for future tech-driven initiatives.
Karma’s efforts are reflective of a broader movement towards sustainability within technology sectors worldwide. With significant backing, its potential impact is substantial.
Karma’s £9.5 million investment marks a transformative phase. With strategic plans and solid partnerships, the company is poised to lead in sustainable solutions.
The app’s impact on reducing food waste and promoting eco-friendly practices is both promising and influential as it expands its reach.