Gousto cuts valuation after share sale - report
Meal kit delivery service Gousto has reportedly cut its valuation after raising tens of millions of pounds in additional funding to help see it through a volatile economic period.
According to Sky News, Gousto tapped existing investors in recent weeks for $50m in the form of a share sale.
Sources told Sky that the funding round, which has not been publicised, took place at a "significant" discount to the $1.7bn valuation at which it raised funds just over a year ago.
Founded in 2012, Gousto sells subscriptions to recipe boxes and markets itself as offering healthy meals at value-for-money prices. It has drawn investment from the SoftBank Vision Fund 2, the world's largest technology company backer, Unilever's ventures arm, Fidelity International, the railways pension scheme Railpen and Grosvenor Food & AgTech, an arm of the Duke of Westminster's vast business portfolio.
A $100m primary fundraising in January 2022 was followed by a $230m secondary share placing which allowed existing investors to reduce their holdings.
SoftBank invested at a significant premium to the valuation that saw Gousto become a "unicorn" - companies worth at least $1bn (£739m) - in November 2020, meaning it is now likely to be sitting on a paper loss on its stake, Sky said.
The size of the discount to the last funding round was unclear, with shareholders expected to receive a formal update from the company shortly.
One insider told Sky: "The raise will provide the cash headroom required as the company enters a volatile period."