Dog friendly coffee shop venture Coffi Lab has secured a seven-figure investment to support its growth plans. The business, set up by entrepreneur James Shapland, has been boosted with a £1.7m investment injection from the Development Bank of Wales.
Coffi Lab’s current portfolio of outlets (labs) extends to nine, including five in Cardiff and two in Monmouthshire. It also has two in the south-west of England, with a third scheduled to open in Bristol in January.
Established in 2021, owner Mr Shapland started the business after spending 10 years as founder and chief executive of Coffee#1, before selling the chain to SA Brains in 2011 in a multi-million-pound deal.
After exiting Coffee#1, he was keen to establish a chain of premium, community-based coffee shops which would welcome dog owners and their pets along with providing quality coffee and food.
Following the latest investment the business is planning to open more venue, at a rate of four a year, in the south-west of England and south Wales in an expansion expected to create 40 new jobs over the next 12 to 18 months. Coffi Lab currently employs around 160. The loan from the development bank has a convertible to equity element.
Mr Shapland said:“When I started Coffi Lab it began with an introspection of what mattered to me. Inspired by my beautiful Fox Red Labrador Dylan, I wanted to create a space where we could welcome dogs with open arms. Beautiful, open venues; a focal point of leafy neighbourhoods where family and friends could come together without having to leave their canine companions at home.
“We have invested heavily in our infrastructure to aid smooth and efficient growth. Last year we opened our Coff Lab Roastery and Bakery as well as a central kitchen which has enabled us to deliver seasonal menus and develop relationships with wonderful producers across Wales. Our growth has enabled us to donate over £100,000 to Guide Dogs 海角视频, sponsoring nine life changing guide dog puppies to date.”
He added: “The investment we’ve had from the Development Bank of Wales means we’ll be able to leverage our investment, speeding up our roll out to bring our ‘labs’ to even more communities across Wales and beyond.”
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Bethan Cousins, new investments director at the Development Bank of Wales, said: “Coffi lab has gone from strength to strength and have established a strong Welsh brand which has proven popular within their local communities.
" We were extremely impressed by the track record, strength and talent within the management team and are delighted to support their growth with this major equity investment.
“We look forward to working in partnership with the team to accelerate the next stage of their business growth plans as they expand.”
Acting as lead financial advisor to Coffi Lab, Jamie Roberts, corporate finance partner at Grant Thornton said: “Coffi Lab’s brand identity resonates extremely powerfully with consumers and the business is undoubtedly one of the most exciting growth stories in the consumer sector right now. We were delighted to advise James, Hannah (Gillard the firm’s managing director) and the Coffi Lab team on this transaction.”
Coffi Lab was ranked Wales’s second fastest-growing indigenous SME in the 2024 Wales Fast Growth 50 initiative, after achieving a 1,102.3% increase in revenues between 2021-23.