Too Good To Go, the company enabling consumers to purchase food nearing its expiration date, is securing $31.1 million in funding; blisce/ is leading the investment with a contribution of $15.4 million. Current investors and staff members are also participating in this financing round. Despite having been established for some time, this marks the first instance of Too Good To Go receiving capital from a venture capital firm.

For several years, the company has been functioning across numerous European nations. It manages a marketplace specifically designed to address food waste. Food businesses, including restaurants, supermarkets, and bakeries, offer their surplus food items through the platform. Simultaneously, consumers have the opportunity to acquire this food just before it becomes unsuitable for sale.

This arrangement proves advantageous for all parties involved: businesses can recoup some revenue from otherwise wasted food, customers benefit from reduced prices, and unnecessary waste is minimized. Naturally, Too Good To Go also profits through a commission charged on each transaction.

Mette Lykke, the company’s Chief Executive Officer, shared with Ingrid Lunden of TechCrunch that approximately one-third of all food produced globally is either lost or discarded – indicating a substantial market potential. While the company had been experiencing growth, the pandemic significantly impacted its revenue, as numerous restaurants were forced to close and many consumers opted to stay home.

Lykke previously informed TechCrunch in September that Too Good To Go experienced a 62% decrease in revenue as a result of COVID-19. However, this setback will not hinder the company’s progress.

Currently, Too Good To Go operates in 15 countries and has facilitated the rescue of 50 million meals. To date, 65,000 businesses have utilized the platform to sell surplus food, and 30 million individuals have registered for the service.

Too Good To Go is now focusing on its most ambitious expansion yet – entry into the U.S. market. Similar to the situation in Europe, a significant amount of food is wasted in the United States. Data from the USDA’s Economic Research Service indicates that 30-40% of the food supply is lost or wasted.

Given the highly localized nature of the company’s operations, Too Good To Go is initiating its U.S. presence in select metropolitan areas. The company launched its services in New York City and Boston in September, and has since extended its reach to portions of New Jersey.

Within the U.S., the startup has already gained 150,000 users and is collaborating with 600 businesses. It has successfully sold 50,000 meals. While these figures are currently modest, the recent quarter has presented unique challenges for restaurants and grocery stores across the country.

The coming months will reveal how the company develops. This latest funding round is expected to significantly increase usage within the U.S. and facilitate more effective long-term planning.