Dragons' Den Reject Gousto Raises £1.2 Million

Food recipe delivery firm Gousto has served up £1.2 million funding from MMC Ventures.

The site, which was rejected from BBC show Dragons' Den, delivers 26,000 meals a month and the founders claim to be growing at 130 per cent month-on-month.

The Mail on Sunday described its products at the weekend as 'organic, locally sourced ingredients with recipes.' It's recipes allow customers to make the meals from scratch using precise quantities of bagged-up ingredients. It varies its menus every week.

Gousto: Off The Dragons' Menu

Founders and former bankers Timo Schmidt and James Carter, both 29, told Dragon's Den they were losing £25,000 a month but soon after being rejected last year received £250,000 from investment platform Angel Co-fund. 

The Grocer magazine quoted Schmidt as saying: 'We had three funding options but went with MMC because we think they really understand our concept best and they are supporting us with their entire network - we're really excited to be working with them.'

The Grocer also reported at the end of August that Gousto has secured more than £1 million from unidentified 'leading figures in the food industry' which Gousto said included 'directors at listed food businesses'.

A partnership to list its products on Ocado, whose board includes chairman includes serial investor and non-executive Sir Stuart Rose and dot.com entrepreneur and Ocado chief executive Tim Steiner, less than two weeks before .

At that time the Grocer said Gousto was delivering about 10,000 orders a month.

It has been suggested that Gousto used its appearance - and rejection - on Dragons' Den for publicity rather than needing to raise the money.

[Meanwhile, we spotted this interview with Timo Schmidt on Just-food.com from a few months ago which is definitely worth a read.]