Food redistribution platform Yume says its latest $2 million seed funding round, led by an Asia-Pacific-based early-stage venture capital firm, Investible, will go towards growing its technology capabilities in preparation for expansion overseas.
The raise brings Yume’s total capital raise to $7 million, with this round bringing in new and previous investors including Launch Vic, Goodrich Group, Veolia as well as angel investor Pitzy Folk.
Yume’s tech platform stops edible food from going to waste by connecting surplus food from manufacturers to businesses and charities that can use it.
Katy Barfield founded the enterprise in 2016. Since then, it has redistributed almost eight million kilograms of food, returned more than $22 million to companies who use the platform to commercialise surplus food, and donated more than one million meals to charities.
By digitising and automating the traditionally manual processes used for sales and donation, Yume allows manufacturers to automate workflows, while also providing powerful data that allows them to boost revenue and minimise food waste.
Alongside its partners including Unilever, Kellanova (Kellogg’s), and Mars Food and Nutrition, Yume is pioneering new standards for inventory clearance and donations, as well as setting a precedent for the industry.
Kellanova ANZ sales director, Ben O’Brien said that within the first three months of using Yume technology, Kellanova sold 150,000 kilograms of excess food, at significantly increased returns.
“By digitising our processes and expanding our sales channels with Yume, we’re continuing to combat the environmental impacts of excess food, while seeing positive returns for the business,” said O’Brien.
Barfield said, “Australia has a food waste problem, in fact, it’s a 7.6 million tonne problem. The amount of land used to grow wasted food in Australia covers more than 25 million hectares, a landmass larger than the state of Victoria.
“Yume was founded to eradicate this problem and our platform has grown rapidly as large food manufacturers have been able to utilise our technology to connect surplus food to Australian businesses and charities, reducing waste and increasing their revenue.”
The new funds will be invested into growing its technology capabilities in preparation for expansion overseas. The certified social enterprise plans to double its headcount by the end of 2024, with 75 per cent of that in the technology and product teams.
“By plugging in to Yume, manufactures are selling 128 per cent more excess food with a 150 per cent increase in returns. The technology also provides data so manufacturers can measure their impact as they deliver on the triple bottom line,” said Barfield.
A first for Investible.
Investible was founded in 2014 with a model that sees its cross-sector and climate tech VC Funds co-investing alongside members of Club Investible, its global investor syndicate and community.
This funding round was a first for the VC, with three of its vehicles – Early Stage Fund 2, Club Investible syndicate, Investible Climate Tech Fund – investing in Yume together. .
Investible chief investment officer, Charlie Ill, said, “Combine the ambitious and proven team with a massive market opportunity which has been validated by blue chip customers, we have the workings of a strong and impactful business.
“On this basis, Investible has made a very high conviction investment, with members of our Club Investible group investing alongside our two funds. Yume is backed by our network of over 180 experienced investors and business leaders, supporting the great work being done by Katy and her team.”
Ill said Investible’s Climate Tech Fund is a dedicated early-stage VC fund that is focused on founders creating companies driven by high-growth technology that will have a positive climate impact. Nearly half (48 per cent) of its investments are in companies with a female founding member, and 21 per cent are led solely by women.
The Investible portfolio includes more than 140 companies across 12 countries and 20 sectors including Canva, Ipsy, Car Next Door, Quantum Brilliance, Eden Farm, Applied EV and more.
