Posh desserts brand Pots & Co has sold a minority stake to raise cash to maintain rapid levels of growth at the business in a £4.5m deal.
The one-pot dessert company, which knocked BrewDog off the top of The Grocer Fast 50 list in October, will use the £1.6m injection of capital to double capacity at its London production headquarters and strengthen the balance sheet.
The rest of the money from a group of US-based private investors and an individual backer in the UK will provide early shareholders in Pots & Co with a return.
The deal for the small minority stake values the business at £36m, signalling a big jump from a 2013 fundraising round of £250,000 that put the valuation at just £900,000.
Founded by stockbroker-turned-chef Julian Dyer in 2012, Pots & Co has doubled revenues every year since its launch. Sales have leapt from £150,000 in 2013 to almost £6m in 2016, with the business on track to exceed £12m this year as airline deals boosted the top line further.
In October, Pots & Co soared to the top of The Grocer’s annual ranking of the 50 fastest growing privately owned fmcg firms thanks to a two-year compound annual growth rate of 100.4%.
Co-owner Simon Champ told The Grocer this week that investment in its kitchen production facilities would help the business push sales to more than £30m in the next two years.
“The funding means growth at the business will not be constrained by capacity,” he said. “It gives us the ability to continue to be a Great British company with a growing export story.”
As well as doubling capacity at its manufacturing site, the money will be used for marketing and to hire at least 10 new staff to join the 47-strong team.
Pots & Co sells its ceramic dessert pots in Waitrose, Tesco, Sainsbury’s, Ocado, Whole Foods Market, Harrods, Booths and Selfridges.
Exports at the business, which make up 30% of total sales at present, are also growing rapidly as its desserts make headway in the US, alongside markets in Netherlands, Poland, France and Ireland.
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