Insomnia Cookies wins backing for growth plans as Krispy Kreme completes divestment

Late-night bakery delivery service Insomnia Cookies has secured further investment for its growth drive, including a rollout of more stores in the UK

Founded in the US in 2003, the on-demand bakery has accelerated plans to open 1,800 bakeries globally over the next 10 years after winning further backing from investors.

Brussels-based private equity firm Verlinvest and New York’s Mistral Equity Partners have increased their investment in Insomnia after buying out doughnut giant Krispy Kreme’s remaining stake in the business.

Krispy Kreme gave up its majority ownership of Insomnia in July 2024, retaining 34% of equity in a deal that valued Insomnia at $350m, a figure which doubled under Krispy Kreme’s five-year stewardship.

The delivery chain will open its sixth UK bakery in Leeds tomorrow (21 June), with further openings planned in Birmingham in July and other cities throughout the UK later in the year. Around 1,500 people attended the launch of the social media-powered brand’s UK enterprise in Manchester in 2023, and Insomnia has said it is confident that its business model has translated well to the UK.

“We believe Insomnia Cookies has all the ingredients to become a global icon in quality indulgence: a visionary founder, a cult-like following, and a clear edge in digital convenience,” said Clément Pointillart, managing director at Verlinvest. 

“We’re proud to deepen our commitment to Seth [Berkowitz, CEO] and the team as we help take Insomnia across the globe.”

Insomnia’s ambitious growth plans have been supplemented by several senior hires, including new chief financial, marketing and people officers. It currently has nearly 350 locations in the US, Canada and the UK.