B&M Retail, with 21 stores mainly in the north of England, will work with the private investors to focus on non-food, which has not been performing as well as grocery.
Chief executive Stuart Greenwood said: “We have been reactive on the supply side, taking products when they were offered to us. We are now going to be proactive in our sourcing.”
He said having additional funds would benefit customers, staff and suppliers: “We have brought in investors, but they are not typical venture capitalists. They are private investors interested in the business and the management and want to grow the company.”
Phildrew Ventures has sold its entire shareholding.