Circularity Capital said Oct. 23 that it has invested in Winnow Solutions. Financial terms weren’t announced. Winnow, of London, has developed a solution for designing out food waste in commercial catering facilities.
London, 23rd October 2017: Circularity Capital, the specialist private equity firm targeting high-growth European SMEs in the circular economy, has made its maiden investment in Winnow Solutions (Winnow).
Headquartered in London, with offices in Dubai, Shanghai and Singapore, Winnow has developed a solution for designing out food waste in commercial catering facilities. The business has operations in 29 countries working with thousands of chefs and cooks to reduce food waste. Sites using the solution typically see food waste cut in half within 12 months from point of installation, resulting in an increase in gross margin of 2 – 6%.
The technology is being used internationally with global hospitality brands such as IKEA, Compass Group, AccorHotels and Carnival Cruises rolling out the Winnow solution at scale.
Whilst the business case is clear there is also a significant environmental benefit in reducing waste. Winnow estimates its clients are saving 4,300 tonnes of food waste annually through the use of the Winnow system – the equivalent of saving over 10,000,000 meals every year or one meal every three seconds.
Circularity Capital’s investment in Winnow is consistent with its hands-on approach of backing businesses capturing new sources of value through circular business practices. Circularity Capital’s investment will see it play a key role in supporting the management team accelerate its international roll out plan.
David Mowat, co-founding Partner at Circularity Capital, said:
“Winnow has developed a highly effective preventative solution, has the right management team and has proven its ability to deliver value for its rapidly growing blue-chip client base. The investment in Winnow is also highly aligned with Circularity’s focus on using the circular economy to identify opportunities to drive financial value creation in parallel with positive environmental and societal impact.
“We see Winnow as a great fit with our focus on the circular economy. Globally we throw away an estimated $1trillion worth of food each year. Just focusing on hospitality, that’s an $100bn market opportunity.”
Marc Zornes, founder of Winnow, commented:
“At Winnow our focus is on creating simple, intuitive tools that empower chefs to reduce waste and run more profitable kitchens. For us it is very important to have the support of an institutional investor who understands our vision and is dedicated to developing Winnow’s leading market position. We were attracted by Circularity Capital’s specialist expertise and network in the circular economy and are excited to be working together to deliver the next phase of Winnow’s growth.
About Circularity Capital:
Circularity Capital was founded in 2015 to deliver value for investors by supporting SME growth and innovation in the circular economy. Circularity Capital’s investment strategy specifically addresses the increasing challenges faced by traditional linear, ‘take-make-dispose’ models of production and consumption. Circularity Capital seeks out businesses that can out-perform the market and their linear competitors by applying the circular economy framework. Circularity Capital targets investments of £1m-£5m in profitable, fast growing European SMEs operating across the circular economy. Circularity Capital’s investors include financial institutions, corporations, family offices and leading global impact investors.