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Farmdrop<\/a>, a farmer-friendly online grocery platform based in the U.K., has raised \u00a37 million in Series A funding. Leading the round is Atomico, the London VC fund founded by Skype co-founder Niklas Zennstr\u00f6m.<\/p>\n Originally launched in 2014 as a \u2018click and collect\u2019 service that let you order groceries online direct from farmer-producers and pick up your order at a local collection point, the company has since pivoted to door-to-door delivery but with the same basic idea of a marketplace that bypasses the mass supermarkets.<\/p>\n \u201cThe fundamental problem is that the supermarket\u2019s dominance over the last fifty years has put huge amounts of downward pressure on farmgate prices,\u201d explains Farmdrop co-founder Ben Pugh. \u201cIn this environment, the only option for producers has been to focus on yields and durability which has led to a big depreciation in the taste and nutritional quality of homegrown foods\u201d.<\/p>\n To counteract this, the Farmdrop platform claims to remove (or replace) wholesalers and retailers from the supply chain, which enables it to pay producers roughly double what they would get from a supermarket. Specifically, I\u2019m told that farmers receive around 75 per cent of the final shelf price. To put this in context, Pugh says that most farmers would be lucky to get 50 per cent from the supermarkets.<\/p>\n \u201cBasically, Farmdrop is creating a profitable route to market for smaller farmers whose sole aim is grow foods that maximise flavour and nutrition. For customers we offer them the most affordable access to the freshest, farmer\u2019s market quality ingredients,\u201d he says.<\/p>\n Meanwhile, I\u2019m told that the startup plans to use the new funding to improve customer experience, develop new technology for farmers to manage their own inventory, and launch new distribution hubs outside of London, with an opening in Bristol planned for later in 2017. It also says it reached annualised revenues of \u00a33 million earlier this year.<\/p>\n Atomico\u2019s Zennstr\u00f6m comments: \u201cAtomico likes to invest in companies looking to tackle some of the bigger sustainability challenges our planet is facing. That is why we\u2019re incredibly proud to have led Farmdrop\u2019s second investment round. They are deploying innovative technology to simplify the food chain and meet the growing demand for more sustainably sourced, local food\u201d.<\/p>\n In addition to Atomico, Farmdrop\u2019s other backers include Jon Reynolds, the CEO and co-founder of SwiftKey, Alex Chesterman, the founder of Zoopla, Nigel Wray, serial investor and chairman of Saracens Rugby club, and Quentin Griffiths, the co-founder of Asos.<\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"https:\/\/tctechcrunch2011.files.wordpress.com\/2017\/04\/delivery1-copy.jpg?w=680\")
Farmdrop, a farmer-friendly online grocery platform based in the U.K., has raised \u00a37 million in Series A funding. Leading the round is Atomico, the London VC fund founded by Skype co-founder Niklas Zennstr\u00f6m. Read More<\/a><\/p>\n\n<\/img><\/a>
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