XOXO gut health soda startup secures £1.5m to bolster growth

Prebiotic soda startup XOXO has secured a £1.5m investment to support the business’s rapid growth.

Rory Paterson and Nick Janssen launched the London-headquartered gut health drink brand in October 2022 and have built its distribution base to 1,600 stores across the UK and Europe.

The three-strong range – Watermelon, Orange and Ginger & Lemon – are stocked in more than 1,000 Rewe stores in Europe, as well as in Planet Organic and Whole Foods in the UK. It also supplies q-commerce firm Zapp, Eat 17, Urban Outfitters and Equinox gyms.

XOXO said it had rapidly built volumes to more than 60,000 cans a month within six months of launching, and now has a monthly turnover of £100k, which it expected to grow “significantly” in the next 18 months.

The investment from a number of VC firms will be used to grow the team, build distribution further in the UK and Europe, and expand the range.

“Since launching the business nine short months ago, the interest from both customers and consumers has been nothing short of incredible,” Paterson added.

“Last month we sold over 60,000 cans and had some of the highest rate-of-sale figures our customers have ever seen for a startup.

“With the funding, we can now continue to build our team as we look to grow this new category in soft drinks geared towards younger generations, who love our brand messaging and bold flavours as well as health benefits.”

XOXO is plant-based and low in sugar and calories, with each can containing 8g of prebiotic fibre.