Matsmart to raise SEK 400 million from investors led by Sweden's SEB Private Equity.

Matsmart, a Stockholm, Sweden-based online discount retailer for non-fresh food, completed a new equity fundraising effort, in a SEK 400 million ($37.6M) transaction deal..

The money was raised from investors led by Sweden's SEB Private Equity and Exor Capital from Netherlands.

Proceeds will be used to accelerate growth in Europe's largest markets via the Motatos brand, as well as improve e-commerce's customer offer and experience.

Matsmart, founded in 2014 by CEO Karl Andersson, Erik Södergren and Ulf Skagerström and led by CEO Peter Beckius, is an online food retailer selling mis-labeled or outgoing goods at discounted prices with home delivery. The company offers a platform for people to buy FMCG items that would otherwise be thrown away because of reasons like surplus amount, expiration, incorrect or damaged packaging at a much lower cost than its original. Motatos also offers to deliver these FMCG items directly to the doorstep of its consumers.

The service is available in Sweden, Finland as well as in Denmark and Germany, where it operates under the Motatos name. In 2021, Matsmart-Motatos had a turnover of SEK 722 million ($67 million).

Matsmart previously raised $69 million in 2021 in two tranches - $28 million and $41 million - and $18 million in 2019. Other investors in the captable include the British investors from Blume Equity, joined by existing shareholders and Gullspång