Pronto, a London-founded healthy food delivery startup, is shutting down after running out of funds to sustain itself.
The company, which was founded in 2014 by James Poulter, raised £1.2m last August and £838,620 in June, including £140,000 from ordinary Seedrs investors. However, yesterday it told investors and customers that it was closing down because it had failed to secure further investment.
The full letter on the group’s closure from Poulter is below.
Jeff Lynn, the founder and chief executive of Seedrs, provided The Truth About Equity Crowdfunding website, with the following statement: “Pronto raised money on Seedrs earlier this year in a round led by prominent institutional investors Seedcamp and Playfair Capital. As planned, the Pronto team invested the funds into a hyper-growth strategy, but unfortunately despite their hard work they have had to make the difficult decision to cease trading. It is always unfortunate when a company fails, but failure is a common part of early-stage ventures due to their nature. Alongside Seedcamp and Playfair Capital, Seedrs will work with the business to ensure any remaining assets are distributed to shareholders and those investors with eligible EIS investments are able to claim their tax relief. We will as always keep Seedrs investors informed throughout the process.”
Poulter’s letter: Dear our wonderful customers, Pronto, very sadly, is no more.
We never wanted to be ‘just another food delivery company’. We aspired to provide a global food infrastructure where anyone, anywhere, could access quality, affordable food in the most convenient way possible. For us, it was about making meals that were healthy enough to eat everyday—and feeding London was just the beginning.
The complexity and scale of what we were building was vast; owning the end-to-end operational infrastructure and controlling everything from production to cooking and delivery—not to mention our tech—was not only labour intensive but expensive. As many businesses in the start-up space will have experienced, we came up against funding issues and needed significant capital to continue operating and to scale Pronto.
We fought incredibly hard to make this happen with the most dedicated and driven team and of course you, our wonderful customers, but unfortunately it wasn’t meant to be.
Thank you so much from us all for your support and involvement in our journey. It has been our absolute pleasure feeding you, pronto (well, at least most of the time).