October 18, 2019

By Lynda Kiernan

UK-based Winnow Solutions, a tech developer of smart solutions that help commercial kitchens reduce food waste, announced it has raised a $12 million Series B backed by IKEA partner Ingka Group, The Ingenious Group, Mustard Seed, Circulatory Capital, and D-Ax.

Concurrently, the startup announced it has secured an $8 million loan from the European Investment Bank (EIB), bringing capital raised within a month to $20 million, and total capital raised to-date to $31.6 million.

Launched in May 2013, Winnow was a winner at the BusinessGreen Technology Awards last year, and is the developer of the Winnow Waste Monitor – a large electronic scale that weighs the produce being wasted in commercial and hospitality kitchens, and reports back though a tablet on what is being wasted, why, and what it is costing the operation – information that most commercial operations do not track. Through the use of the Winnow Waste Monitor, the company said that kitchens can reduce costs by up to 8 percent, and reduce food waste by between 40 and 70 percent in the first six to 12 months of use.

At the beginning of this year, the startup reached a new benchmark of capability with the introduction of AI technology in its newest product, Winnow Vision, offering improved data accuracy through the validation of each food waste entry, and the ability to learn over time, making commercial kitchens smarter, and eventually achieving full automation and not requiring any human input. 

“Winnow has been a strong partner on our journey to reducing food waste in our IKEA stores by 50 percent by 2020,” said Krister Mattsson, managing director, Ingka Investments. “This investment supports growth and creates new opportunities to further accelerate the positive impact of food waste prevention. We are focused to increase the use of digital tools and analytics to both create the IKEA store of tomorrow and to deliver on IKEA’s sustainability ambition.”

Food loss throughout the supply chain in the EU is costing 60 billion euro per year, according to Paul Bosch, food and agri analyst at Rabobank Food and Agribusiness Research.

“European companies could save 5 billion euros a year by introducing innovations in the field of harvesting and post-harvest storage. They also stand to save another 2.5 billion euros through food packaging innovations and 2.5 billion more through monitoring the freshness of products more effectively,” said Bosch.

While it’s true that food waste presents an enormous and complex social and economic scenario, there has been a relatively recent shift in the collective view of the problem. Investors, particularly agtech and social impact investors, have realized the potential for not only social benefit, but the $2 billion market opportunity that exists in developing solutions to this challenge.

“We believe in the market potential and the positive impact of Winnow’s product,” said Joakim Skarborg, Chairman of D-Ax. “With our strong presence in the food market and our commitment to building sustainable businesses, we are excited to continue our support to Marc, Kevin and the team going forward.”

Jamie Butterworth, partner of Circularity Capital, added, “We are delighted to have supported the funding round and maintain our strong relationship with Winnow. We believe strongly in the strength of their technology and its role in accelerating the transition to a circular economy.”

While Winnow has seen great achievements over the course of its existence, the company said that it still has much to do to meet its goal of saving the hospitality industry $1 billion worth of food waste by 2025 in line with the UN Sustainable Development Goal 12.3.

In support of its efforts, the startup says it will use this latest capital raised to further accelerate the development of its technology and to enhance its business approach. 

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.