Redemption Roasters closes £2.7m investment fund to fuel expansion
Now the company is planning to open a further 17 shops in the capital by 2026
Coffee company Redemption Roasters has closed its latest £2.7m investment round as it is set to treble revenue over the next three years to help drive expansion and increase impact in London and across the UK.
With a pre-money valuation of £22m, the company is set to launch four new retail premises over the coming months in London and expand its wholesale network, which currently includes clients KPMG, Meta and Amazon.
The latest investment round was funded by Macquarie Group Foundation, R&Co4Generations (the Rothschild and Co Group Foundation) and Barrow-Cadbury Trust.
Launched in 2017, Redemption Roasters has recorded over 60% year-on-year growth since 2019 with annual revenues forecast to exceed £25m by 2026. Now the company is planning to open a further 17 shops in the capital by 2026.
With a company mission to “reduce reoffending through coffee” it partners with the Ministry of Justice to deliver barista and coffee technician training programmes in HMP Pentonville and High Down. The company also operates a roastery inside HMP The Mount where resident “trainees” benefit from spending extended periods out of their cells working in a positive environment. Through 14 partnerships with UK prisons, over 1,500 individuals have taken part in the company’s programmes.
Paul Plewman, regional CEO for Macquarie Group in EMEA and member of the Foundation Committee, said: “We’re proud to be supporting Redemption Roasters in their mission to reduce reoffending through coffee. We recognise those leaving prison face barriers to employment, but with support from organisations like Redemption Roasters they can overcome these barriers and gain fulfilling employment.
“Investing in the expansion of Redemption Roasters will help build a better society for us all.”
Commenting on the investment round, founder Max Dubiel said: “As a purpose-driven business that has achieved phenomenal growth, we are very excited about this next chapter in our journey.
“The proceeds will drive further growth of our brand and help us achieve even greater profitability through scale. This will also enable the business to do more to help prison leavers and further deliver on our wider social ambitions to support coffee producers throughout the world.”