Karma, a Swedish app which helps restaurants and supermarkets reduce waste, has closed a $12 million Series A funding round led by Swedish investment firm Kinnevik. VC firm Bessemer Venture Partners and global appliance manufacturer Electrolux also backed the startup alongside existing investors including e.ventures.
Karma is a marketplace that allows restaurants and grocery stores to reduce food waste by selling unsold food at a discount direct to consumers, who pick up the food on location. It currently operates in Sweden and London, but plans to use the funding to grow its team from 35 to more than 100 by the end of 2019 and expand across Europe and international markets.
The new cash injection brings the total amount of investment raised to $18 million.
Hjalmar Ståhlberg Nordegren, CEO and co-founder at Karma, said:
“We are delighted to announce this investment which will accelerate our mission to reduce food waste globally. We have known the team at Kinnevik for a long time, and they have the long-term perspective and operational expertise that we were looking for in partners.
“We are also delighted to be working with two new top-tier partners in Bessemer and Electrolux who bring unparalleled expertise in their respective fields.”
Andreas Bernström, investment director at Kinnevik, added:
“We are thrilled to partner with Hjalmar, Elsa, Ludvig, Mattis and the rest of the Karma team. We are huge believers in their mission and have been truly impressed by what they have achieved so far. We are looking forward to supporting them as they scale-up in the next stage of their journey.”
Since launching in November 2016, Karma has expanded to help over 1,500 restaurants, grocery stores, hotels, cafes and bakeries reduce food waste by selling their surplus to 350,000 Karma users.
It launched in the UK in February 2018 and has since expanded to over 400 restaurants including major brands such as Aubaine, Polpo, Caravan, K10, Taylor St Barista’s, Ned’s Noodle Bar and Detox Kitchen.