Xoxo Soda seals £4m investment on eve of major UK retail push

Prebiotic soda startup Xoxo has closed a new £4m investment round.

Led by Lever VC and Slingshot Ventures, with participation from both existing and new strategic investors, the raise would “fuel further expansion, team growth, and brand awareness”, said Xoxo Soda.

It is the third time the brand has raised in the space of two years, following a £4.5m injection led by fmcg investment firm JamJar last June, and a £1.5m raise from other VC firms in August 2023.

“We’ve seen how quickly prebiotic sodas have taken off in the US, and Europe presents a similarly compelling opportunity, with a rapidly growing base of health-conscious consumers and a category still ripe for disruption,” said Lever VC partner James Caffyn. “Xoxo has demonstrated unusually fast consumer uptake, strong repeat rates, and real traction at retail. With a standout brand and a product that delivers on both flavour and function, it is well positioned to lead the reinvention of the soft drinks aisle.”

The raise coincides with Xoxo Soda’s launch into mainstream UK retail. The brand’s Watermelon and Ginger & Lemon SKUs have launched nationwide in Co-op this month (rsp: £1.90/330ml).

The listing is the first time a prebiotic soda brand has secured a spot in the meal deal of a national UK retailer, according to the brand.

Two further nationwide retail launches would follow in May and June, taking UK distribution to more than 11,000 stores, Xoxo said.

“This investment and our expansion into UK-wide grocery is a huge moment for Xoxo Soda,” said co-founder Rory Paterson. “It will allow us to continue building our dream team, deliver dynamic marketing campaigns to increase brand awareness, and drive even more product trial, all while reinforcing key areas across all functions and markets to ensure continued innovation and excellence.”

Xoxo launched in May 2023 and is also sold in Germany, the Netherlands and Austria, as well as in Whole Foods Market in the UK.

Its drinks are plant-based, low in sugar and calories and contain 6g of prebiotic fibre per can.