As previously reported, Farmdrop hit equity crowdfunding platform Crowdcube last year and secured its initial £400,000 fairly quick. By the end of its funding round, the company raised £748,880 from 352 investors.
Farmdrop allows local food producers to sell direct; a “click-and-collect farmers’ market.” The company’s key mission is to create and grow sustainable local food systems. By cutting out the middlemen, producers receive 80% of the retail price and customers can save money.
Here’s how FarmDrop works:
- Members sign up and shop: People join their local FarmDrop and order online as they would from any other online grocery retailer.
- Producers get their final orders: Farmers, fishermen, and bakers get their final orders three days before the drop, which helps them pick, catch and bake their orders.
- The FarmDrop 1: producers bring the produce to the venue: The producers arrive first and put their orders into crates or bags for the customers.
- The FarmDrop 2: members pick up their shop: The Members, who have put in an order, pick up their shopping.
- How each FarmDrop starts: Each FarmDrop is started by a community-minded entrepreneur – the website calls hem Keepers. Once their application is successful, they need to find a venue (to host the FarmDrop) and enough Members and Producers to have a successful weekly market. All Producers pass due diligence process before they can start trading on the platform.
Sharing details about Chesterman’s investment, founder of Farmdrop, Ben Pugh told City A.M.:
“[Chesterman] could see that we were starting to generate some traction, and that we had a very strong consumer value proposition. We’ve been very lucky at Farmdrop in being able to attract very successful tech entrepreneurs [as investors].”
Farmdrop recently had to alter its business model by moving to a system whereby the farm produce is distributed to one of 14 hubs in London. “We had to move towards a more convenient offer for both our customers and our producers,” Pugh revealed, then noted,“retained the core ethos around disintermediation.”
Farmdrop is also planning to launch a new crowdfunding campaign on Crowdcube to raise 3 million in order to fund its plans for a city-wide home delivery service.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!