Pieter Pot, a sustainability-focused grocery delivery start-up, has raised €9 million to expand in Europe.
The Dutch start-up, which aims to cut down on plastic waste associated with delivery, plans to launch operations in markets outside of the Netherlands in 2022. The UK, France, Germany or Scandinavia are all on the agenda for expansion.
The funding round was led by ETF Partners with SHIFT Invest, The Future Food Fund and IQ Capital participating.
Pieter Pot tries to differentiate itself in the busy grocery delivery space with a focus on the circular economy and reducing packaging waste.
According to the Rotterdam-based start-up, plastic usage “continues to surge” with low levels of recycling with a significant amount of plastic still ending up in landfills. On top of that, plastic production remains heavy with emissions.
In May of this year, Plastic Waste Makers Index published a report that claimed just 20 large companies are responsible for half of the world’s plastic waste.
E-commerce, including food and grocery delivery, has contributed to this proliferation of plastic packaging as well, Pieter Pot said.
Founded in 2019, the Dutch outfit carries out next-day deliveries with groceries delivered in reusable plastic containers that are then collected, cleaned and re-used. The company said it has made deliveries using more than 700,000 of its containers to date.
“Plastic packaging is a by-product. Consumers are interested in what’s in the box, not the box itself. By moving packaging to reusables, we’re able to radically alter consumption patterns without demanding people to dramatically change their behavior,” chief executive Jouri Schoemaker said.
“We’ve now proven this could be done at scale and, with the new investment, we are doubling down on growth and our customers’ convenience. ETF Partners’ experience and track record speak for itself, and we are delighted to have them on board.”
By focusing on sustainability and lowering waste, Pieter Pot is seeking to stick out in what has become a crowded market for online grocery delivery that focuses on rapid deliveries. Last week, Jokr, one of the newest and biggest names in the field raised $260 million, signaling that there’s still a hunger among investors for the sector.
Pieter Pot is by comparison much smaller but has a unique opportunity, according to Tomer Strikovsky, investment manager at lead investor ETF Partners.
“Pieter Pot is at the epicenter of multiple trends, including sustainability and technology, and reimagining a sector central to everyday life, specifically groceries,” Strikovsy, who will be joining the start-up’s board, said. “It is exactly the sort of business we are looking to invest in: a unique service offering in a burgeoning, continually growing sector, led by a team hyper-focused on having an impact through their sustainable, scalable company.”
Other investors in the company include Simon Murphy of The Modern Milkman, another reusable packaging-focused company.
