Organic food delivery firm secures VC backing

Venture capitalist firm Phoenix Equity Partners has confirmed it is to invest in organic food delivery firm Abel & Cole and signaled it is on the prowl for further green business investments.

The financial terms of the deal were not disclosed, but Phoenix said the investment will be used to ensure capital is in place to continue to rapid growth the home delivery and vegetable box company has enjoyed over the past six years.

Andrew Deakin, a partner at Phoenix, said that Abel & Cole had grown five fold in the past five years and added that the investment would be used to help expand the company’s delivery area and customer base.

The company is now considering opening a new delivery depot and is examining possible sites in northern England, the south west and Kent to add to its existing depots in the south east. It recently opened sites in Manchester and Birmingham, Deakin said.

Deakin said the deal represents the first pure green business investment undertaken by Phoenix, but he added that the company was keen to invest more of its recently raised £375m fund in the sector.

"The environment is now a mainstream issue and organic, healthy and environmentally conscious products are on the customers' agenda," he said. "It is a growing area that we'd like to invest further in and we believe we have the capital and expertise to help green businesses grow."