Modern Milkman has raised £10m in new funding as it seeks to expand its doorstep delivery model and develop a broader logistics platform focused on sustainable household consumption.

The investment brings the company’s total funding to more than £60m and comes from Salica Investments, marking Modern Milkman’s first backing from Salica’s Growth Debt Fund. It is also the fund’s first direct-to-consumer investment.

Founded in 2019 by Simon Mellin, Modern Milkman delivers groceries and household essentials in reusable packaging, positioning itself as part of the circular economy. The business now serves more than 100,000 households across the UK and has built a nationwide distribution network based on local hubs and early-morning delivery routes.

The company said the new capital would be used to enhance its logistics infrastructure and introduce additional integrated services aimed at making sustainable choices more convenient for customers. By leveraging its existing delivery footprint, Modern Milkman plans to broaden its offering beyond core grocery products.

The funding follows the group’s expansion into the US in January 2024, when it acquired a regional operator and began trading in several north-eastern states, including Connecticut, Massachusetts, Rhode Island and New York. The company has since extended operations into Ohio as part of its transatlantic growth strategy.

Mellin said the investment would allow the business to deepen customer engagement and accelerate product development. “This backing enables us to go beyond customer expectations and unlock a new generation of integrated doorstep services,” he said. “There is a clear appetite for sustainable alternatives, and this funding puts us in a strong position to scale.”

Usman Ali, a partner in Salica’s Growth Debt Fund, said Modern Milkman combined strong leadership with a clear commercial and environmental strategy. “Its commitment to sustainability and the circular economy creates long-term value while addressing global environmental challenges,” he said.

Investors and industry observers see the deal as further evidence of growing appetite for business models that link convenience with environmental responsibility. As pressure mounts on households to reduce waste and emissions, companies able to embed sustainability into everyday consumption are attracting increasing interest.

Modern Milkman said the latest funding marked a significant step in its ambition to redefine sustainable doorstep delivery at scale in both the UK and overseas markets.