Meal-kit delivery service Gousto has reportedly slashed its valuation after securing millions of pounds in extra funding to help it through the current economic period.
Currently, the size of the discount to the latest round of funding is unclear, however, according to Sky News, the service, backed by influencer Joe Wicks, has recently tapped existing investors for £50m in the form of a share sale.
Subscribe to Grocery Gazette for free
Sources close to the company claim the funding round, which has not been publicised yet, took place at a “significant” discount to the $1.7 billion (£1.4 billion) valuation, where it raised funds last year.
This comes as last January, the healthy meal-kit provider revealed a $100 million (£83 million) primary fundraiser took place, followed by a $230 million (£191 million) secondary share, which allowed existing investors to reduce their holdings.
Gousto launched in 2012, and have since received investment from SoftBank Vision Fund 2, Fidelity International, Railpen and Grosvenor Food & AgTech.
“The raise will provide the cash headroom required as the company enters a volatile period,” one insider told Sky News.
The news comes as last year, the food kit provider announced its partnership with charity, The Trussell Trust’s Hammersmith and Fulham Foodbank, to deliver healthy food parcels to those struggling in the cost-of-living crisis.