ETF Partners has invested £5 million in UK start-up The Modern Milkman (TMM) to support its plastic-free grocery delivery service.
The Manchester-based business delivers fresh groceries from independent and local suppliers directly to customers’ doorsteps in returnable and reusable packaging. While the start-up began as a local milk round that looked to reduce plastic waste, it has since grown to deliver goods such as fresh fruit juice, eggs, coffee and cereals.
According to ETF Partners, The Modern Milkman’s digitally advanced delivery platform grew its revenue by ten times in 2020. To date, the start-up has helped reduce more than nine tons of single-use plastic.
With the capital, the start-up hopes to boost its growth plans in 2021 and accelerate sustainable grocery shopping in the UK. The company looks to expand beyond Northern England across the UK, hoping to help consumers shift away from single-use plastic, without having to compromise on convenience.
The funding comes as demand for food deliveries are soaring as a result of the Covid-19 pandemic, as an increasing number of UK consumers are shopping online.
Simon Mellin, founder and CEO of The Modern Milkman, said: “ETF was the obvious choice of investor for us and we’re thrilled to have their support as we move into the next phase of our journey. We believe their insight, skill and experience in the sustainability space will help us deliver the positive impact we strive to have on the environment at pace, as we move forward with our expansion plans across the UK over the course of 2021.”
Tomer Strikovsky from ETF Partners added: “In today’s world, many of us are looking to reduce our environmental impact on the planet, but convenience remains key to daily life. We have full confidence that TMM will play an important role in changing how we consume food, and we continue to be impressed by the founders and their commitment to sustainability.”
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