Modern Milkman raises £10m to scale sustainable doorstep delivery

Modern Milkman has secured a £10 million investment to accelerate growth across the UK, expand its US footprint and develop new sustainable services on the doorstep, taking its total funding to over £60 million.

The Manchester-based business said the funding will support the continuation of its door-to-door delivery model, as it builds a comprehensive logistics platform designed to make sustainable grocery shopping easier and more convenient for households.

The investment comes from Salica Investments, which marks the first direct-to-consumer venture backed by Salica’s Growth Debt Fund. Modern Milkman said the support reflects growing investor confidence in circular economy models that combine sustainability with growing infrastructure.

Founded in 2019 by Simon Mellin, The Modern Milkman now delivers to over 100,000 homes across the UK, providing milk and groceries in reusable packaging. The company expanded into the US in January 2024 through strategic acquisitions and currently operates in Connecticut, Massachusetts, Rhode Island, Ohio and New York.

Mellin said the investment will allow the business to move beyond its original concept of milk rotation and introduce a new generation of integrated services.

“Modern Milkman has built a strong, unique and convenient offering for families across the UK,” he said. “This timely investment by Salica enables us to exceed customer expectations and unlock more integrated services at our doorstep.

“Our growth and customer satisfaction show that there is a clear need for sustainable alternatives. With this support, we are well positioned to scale while helping families reduce their environmental impact.”

The company plans to use its existing delivery infrastructure to introduce additional services in line with its circular economy approach, reducing waste and emissions while improving customer experience.

Usman Ali, who works with Salica’s Growth Debt Fund, said that Modern Milkman stands out for its leadership and long-term vision.

“Modern Milkman is a business with exceptional leadership and a clear strategy,” he said. “Its commitment to sustainability and the circular economy creates long-term value while addressing the world’s environmental challenges.”

The latest funding round represents an important milestone for Modern Milkman as it seeks to establish itself as a global leader in sustainable doorstep delivery, at a time when consumers and investors alike are increasingly focused on environmental impact and low-waste living.