Sproud has received £4.8 million from the London-based growth capital investor at a £10 million valuation
Cropped photo of the legs of a milkman carrying a case of Sproud milks

Sproud, a pea milk brand made in Sweden and with international reach, has secured £4.8 million growth capital from VGC Partners, the London-based investment firm founded by Parminder Basran in 2011. Sproud received the cash injection at a £10 million valuation.

In the market since 2018, Sproud has grown from being a Swedish vegan brand to securing international sales with distribution in 15 countries, including the Nordics, the Netherlands, the US, Canada, the UK, and Taiwan. The funds will help push further expansion in the UK and across America.

Sproud, the closest Swedish competitor of Oatly, has gained traction and market penetration since 2019, when the company registered a turnover of $7 million Swedish krona (roughly $800,000). “Sales are picking up now that we have launched in nine countries,” Maria Tegman, Sproud’s head of brand, told NutritionInvestor. She argued that the company is on track to reach $25 million Swedish krona (roughly £2.8 million) from all international sales in 2020.

The brand has four SKUs in the market, which are sold in the ambient aisle. The range comprises Original, Chocolate, Unflavoured, and Barista.

In the Uk, products are available in supermarkets and online retailers such as Waitrose, Ocado, and Amazon, in addition to various independent shops, cafés, and restaurants.  

“We have a hero product that contains 50% less the amount of sugar oat milk has, and more compared with dairy milk. We have double the amount of protein, and we know we foam better, we have a more neutral taste, and we are more sustainable. We beat oat milk in every single benefit,” said Tegman.

VGC Partners manages two funds totalling $106.4 million of assets under management. The second fund closed in March at £50 million, following its flagship fund anchored by Facebook co-founder Eduardo Saverin.

VGC Partners Fund II targets UK-based consumer, media and technology companies, and make investments of between £2 million to £5 million for minority stakes in high growth companies.

Basran said: “Through our experience of backing innovative food and drink brands, we have a deep understanding of the plant-based market, including from the perspective of evolving consumer demands and the cutting-edge product innovation that is catering to this.

“We believe Sproud has the potential to become a global leader in the huge and growing dairy alternative market, owing not only to its superior taste and nutrition profile, but also due to its positive environmental and sustainability credentials.”

Headquartered in Malmö, Sproud supplies its plant-based milk to some of the largest hospitality chains in the Nordics, including Espresso House and Clarion Hotel.

The company’s investors include VGC Partners, a growth venture firm based in London, Findeln Holding, a Malmö-based, family-owned investment company in which Sproud co-founder Nicklas Jungberg is a majority shareholder, and Swedish investment group Dream Beverage.

Sproud has raised £8.7 million to date.

Date published: 25 January 2021

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