Farmdrop raises £10m in new funding round
The UK-based online grocery delivery company Farmdrop has reportedly raised £10m in a new funding round.
The new round takes the total amount raised by the online grocer to over £20m.
Founding in 2014, Farmdrop is effectively an online farmers’ market, sourcing and delivering food from local farmers and producers. In a statement sent to Post&Parcel today (14 June), Farmdrop said that 80% of Farmdrop’s fresh produce is sourced directly from 208 sustainable farmers and independent food makers.
The company started up with a click-and-collect service, delivering to collection points. Now, Farmdrop delivers direct to homes and offices in most areas of London, Bristol and Bath.
With the new investment, Farmdrop intends to double the total number of households it can deliver to over the next six months. The initial expansion will be in the South East of England but the company plans to have a northern hub in Manchester by end of 2019.
Farmdrop told Post&Parcel: “The rising popularity of online grocery and growing demand for high-quality food with provenance has contributed to business growth. Average month-on-month revenue growth since March 2016, when Farmdrop took receipt of its first venture investment, has been 10.3%. The business is now on track to achieve £10m in annualised revenues before the end of 2018.”
The company offers free one-hour delivery slots for orders over £80 and free six-hour delivery slots for orders over £30. One-hour delivery slots for orders under £80 are available for a cost of £4, and three-hour evening slots are available for a cost of £2. For orders under £30, Farmdrop adds an extra £4 charge.
Given Farmdrop’s focus on sustainability, environmental farming practices and organic methods, it will come as no surprise that the company uses 100% electric vans for its last mile deliveries.