Gousto Plots Post-Pandemic Turnaround

Shifting demand and economic headwinds have created new challenges for Gousto.

The latest: According to The Times, the healthy meal box brand endured losses of £158M in 2022 after sales dropped to £307M. Having previously recorded nine consecutive years of double-digit growth, the slowdown raised red flags for the former foodtech unicorn.

What happened: Catering to growing demand for personalised nutrition, Gousto’s meals deliver on convenience, sustainability and health – saving time and reducing food waste. Plus, its AI-powered recipe system allows for a third of its 60 weekly meals to be customised.

Impressing investors, the Joe Wicks-backed company has raised over £600M in total funding, reaching a £1.4B valuation in January 2022.

But… as inflation gripped, Gousto saw its unicorn status cut to a £250M valuation while pursuing a £50M cash injection from selected existing shareholders. As is often the case in a downround, the move was not well received among investors unaware of the discounted raise.

And, despite the fresh funds, after growing its workforce to ~1.7K, the company made multiple rounds of job cuts to help get back on track.

Takeaway: Rocketing costs due to inflation and failing consumer confidence contributed to  Gousto’s problems. Undeterred, founder and CEO Timo Boldt believes Gousto is trending in the right direction. With a new £30M debt facility, an improved H1’23 and plans for UK and overseas expansion, Boldt told The Times Gousto is focused on “cash flow” and “profitability” in 2023.