Starbucks franchisee 23.5 Degrees receives £3.6 million follow-on funding from Connection Capital
The coffee chain’s franchised business partner aims to have 150 stores by 2023.
Starbucks UK franchisee 23.5 Degrees have received their second investment from Connection Capital with the amount of £3.6 million.
The money will be addressed to further 23.5 Degrees’s expansion in the UK. 25 outlets are already scheduled to open in the next 12 months and are looking to launch more drive-through sites.
“Reaching our 50th Starbucks store in just five years was a major milestone and Connection Capital has played a big part in that success. But we’re not stopping there. The UK coffee market is continuing to grow and with our expertise and Connection Capital’s backing, we hope to extend our store count considerably in the coming years,” 23.5 Degrees managing director Mark Hepburn said.
Connection Capital first gave 23.5 Degrees a £5.6 million growth capital investment last September 2015 for the launching new stores and raising debt finance from the Royal Bank of Scotland. The Starbucks franchisee launched their first store in 2013 and have recently opened their 55th store in Newbury Retail Park.
“23.5 Degrees has a real window of opportunity to ramp up its growth. With its attractive business model and proven management team, we are delighted to support it in doing so,” Claire Madden, managing partner at Connection Capital, commented.
