Stockholm-based Karma, an app the helps restaurants and supermarkets reduce food waste, has raised a $12 million Series A round led by Kinnevik, with participation from Bessemer, e.ventures, and Electrolux. Karma has now raised over $18 million in total.
Food waste is an enormous global problem, both economically and environmentally, with over $1 trillion of food wasted every year, and 30% of waste caused by restaurants and retailers. Karma enables restaurants and grocery stores to reduce food waste by selling unsold food at a discount directly to consumers, who pick up the food on location.
Karma says it intends to use the funds to expand its team and continue its international expansion.
Since launching in London in February, Karma has already expanded to over 400 restaurants in the UK including major brands such as Aubaine, Polpo, Caravan, K10, Taylor St Barista’s, Ned’s Noodle Bar and Detox Kitchen. In Sweden, Karma works with a wide range of partners including the three largest supermarkets, premium restaurants such as Ruta Baga and Marcus Samuelsson’s Kitchen & Table, and major brands such as Sodexo, Radisson and Scandic Hotels.
“We are delighted to announce this investment which will accelerate our mission to reduce food waste globally," said Hjalmar Ståhlberg Nordegren, CEO and co-founder at Karma. "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”