Zero waste supermarket Good Club is plotting to raise up to £6m from institutional investors after hitting a £1m crowdfunding target.
The round on Crowdcube, which closes next week, has so far raised £1.1m from more than 1,400 investors.
The business intends to use the cash to grow its range of products in reusable packaging to 50% of total sales, up from 23% currently.
Good Club launched the new range in a trial last year before rolling out to all its customers, with products delivered via carbon-neutral courier and the reusable packaging is collected the next day by the business.
It aims to expand the range from 150 to 500 lines in the next six months.
The convertible raise on Crowdcube will see investors’ capital convert to equity as part of “well-developed” plans to close institutional investment in the next few months.
Good Club co-founder Ben Patten – the former CEO at sustainable online retailer Farmdrop – told The Grocer he expected the full round to raise about £6m from institutional investors and close in the first quarter of 2022.
“We already have verbal commitments from existing investors to follow on in the round and we’re in later stage talks with an impact investor to lead the round who is targeting an additional £2m-£3m investment,” he said.
“There are a number of other parties interested in the round.
“The plans we are currently implementing, to improve operations and reposition zero waste at the heart of the service, provide a range of benefits that is already creating more value and further interest from the investment community.”
Since being founded in 2019 by Patten and Danny Blackman, the members-only service has experienced sales growth of more than 2,000%.
Patten added that with the £1m raised on Crowdcube the business could take all the learnings from its prototyped operations to open an automated and scalable production facility to improve the quality and efficiency of delivering its zero-waste service.
“We’re then looking to turn zero-waste shopping into a superior approach to keeping your house stocked with the products you need it. We want Good Club to not just be better for the environment, we want it to be easier for our customers.”
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