Independent coffee chain Black Sheep Coffee has raised £13m new funds from private investors to back its global expansion across Europe, Asia and the US.
The £13m investment takes the London-based chain to £25m of private fundraising since its 2013 launch.
Its investors include Tellef Thorleifsson, first investor in Spotify, CEO of Norfund and co-founder of Northzone Fund; Bill Shultz, president of Coca-Cola Canada; Tore Myrholt, currently chairman at Antler and former chairman of McKinsey; and finally, Jacob Schram, former CEO at CircleK.
Pre-money valuation for the funding round was £96.2m, bringing the company’s post-money valuation to £109.2m.
The company aims to grow its existing number of sites from 34 to 70 by the end of 2019 and will use the funds to grow the brand internationally.
Black Sheep Coffee has ambitions to grow throughout Asia, the US, France, Germany, Switzerland, Austria and the GCC region and will start this international roll-out with a launch in the UAE this summer.
Black Sheep already has a presence in Manila and is looking to open one more shop in the Phillipines before the end of the year.
It also aims to further develop its newly launched direct-to-consumer e-commerce platform, selling coffee beans, reusable cups and merchandise.
The chain was founded in 2013 by Gabriel Shohet and Eirik Holth and has increased annual sales to £13.3m, growing by 25% like for like over the past two quarters and targeting annual sales of £35m in 2019.
Gabriel Shohet and Eirik Holth, co-founders and co-CEOs of Black Sheep Coffee, said: “We started Black Sheep Coffee to challenge big corporate brands on their sustainable approach, and rid the world of boring, average-tasting coffee.
“We have made a conscious effort to stay clear of institutional investors in order to keep our independence and long-term vision for the brand. As we continue to grow globally, we’ll continue to adhere to our core values: sourcing the best beans in the world, hire the best baristas in town, get rid of plastic, support our homeless communities, never fear competition, open right next door instead.”
Private investors from earlier funding rounds include CFO of Carluccio’s Frank Bandura, Le Pain Quotidien’s Ian Zilberkweit and celebrity poker players Martin Jacobson and Mustapha Kanit.
Coca-Cola’s Bill Schultz added: “Black Sheep Coffee is truly differentiated from the other premium coffee shops, with unique coffee drinks, food and atmosphere. The founders have built an amazing team, driven by their vision and united by the company values. Whether you experience Black Sheep as a patron in their shops and online, or as an associate, supplier or investor; this is an exciting brand to watch.”