Karma, the Sweden-based creator of an online platform that helps businesses sell on unsold food, received $12m on Wednesday from investors including appliance manufacturer Electrolux.
Investment firm Kinnevik led the round, which also featured venture capital firms Bessemer Venture Partners and E.ventures in addition to undisclosed existing backers.
Karma’s online platform enables businesses such as supermarkets, grocers, hotels and restaurants to sell their unsold food to a customer base of some 350,000 users who collect the food direct from the seller.
Electrolux’s contribution to the round was made alongside the formation of a strategic partnership that will make use of the corporate’s expertise in food preservation in order to jointly develop services intended to reduce food waste.
Marty Carroll, Electrolux’s vice-president of digital marketing, said: “As a world leader in appliances, Electrolux is working closely with Karma to help alleviate the global problem of food waste.
“We are impressed with Karma’s innovative digital business model particularly as everyone wins: both the food seller and buyer but importantly also the environment.”
The round came after Karma raised an amount reported to be between Skr30m and Skr40m ($3.5m to $4.7m) from E.ventures and eEquity in July 2017.
The company had previously secured about $230,000 in funding from investors including DHS Venture Partners in 2015, according to Di Digital.