Online groceries company Modern Milkman has raised £50m after closing its latest investment round.
The Colne-headquartered business, which was founded by chief executive Simon Mellin, received the backing of existing investors Insight Partners and ETF Partners during the Series C round.
As part of the fundraising drive, Manchester-based Praetura Ventures announced in July that it had invested £2.25m. Avery Dennison as well as several angel investors have also backed the company.
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Modern Milkman said it expects to breakeven in the UK in 2023 and close the year with over 100% year-on-year revenue growth.
In October, BusinessLive reported that the company's revenue had more than tripled from £7.9m to £24.7m in 2021 while its pre-tax losses widened from £1.7m to £15.4m.
The company delivers eco-friendly produce through a subscription model such as milk, juice, eggs, butter, bread, fruit and vegetables in plastic free packaging and returnable glass bottles.
Modern Milkman said it will use funding to increase research and development into new "product innovation, pioneering technologies and achieving UK-firsts - all whilst supporting global expansion strategies".
Mr Mellin 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."
The company's Crowdcube bid it expected to launch on November 29 after opening last week for pre-registration. The exact amount the business is hoping to secure from investors has not yet been made public.
Mr Mellin added: "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."
On the closure of the Series C round, Insight Partners managing director Jeff Lieberman said: "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 added: "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 and global innovation label and graphic materials at Avery Dennison, said: "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."
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