Growthdeck closes £2.4m equity and debt fundraise for luxury restaurant delivery service SUPPER London
Private equity investment firm Growthdeck has closed a £2.4m equity and debt fundraise for SUPPER London, the delivery service for London’s finest high-end restaurants and iconic stores, which utilises its own vehicles with fully employed drivers.
SUPPER London operates a fleet of unique, custom-made, gyroscopically stabilised delivery vehicles to ensure that food arrives at customers’ homes looking exactly as it did when it left the restaurant or store. Unlike other well-known delivery companies, SUPPER London employs its drivers directly rather than using ‘gig economy’ workers. This allows them to train staff comprehensively and ensure uniform quality of service throughout the customer journey.
SUPPER London counts Estiatorio Milos, Mr Chow, Aquavit and Nobu among its clients, as well as many of the capital’s most popular restaurants. SUPPER London also delivers from premium stores like Harrods, Fortnum & Mason and Hedonism Wines, giving them an ‘on-demand’ option.
This funding will enable SUPPER London to build on its accelerated success during the coronavirus pandemic. Since the start of the pandemic, SUPPER London has increased its revenue by more than 700% and doubled its customer base.
Growthdeck says there is a shortage of financing options for growth businesses at the moment. Banks are increasingly shying away from this market as they look to recoup coronavirus support lending. Growthdeck’s EIS and debt offerings aim to provide alternative sources of funding for these companies.
Shaz Hussain, Investment Director at Growthdeck, says:
“We are hugely impressed with SUPPER London’s growth and are excited to join them on the next stage of their expansion.”
“We’re also thrilled to back a player in the home delivery market that employs its riders directly and pays them properly. The market has responded well to this offering and this funding round will help them continue on their current trajectory.”
“With some banks not having the risk appetite to lend to growing companies, debt financing from alternative sources like ourselves can be a fantastic option for these businesses. We expect the demand for these deals to increase in the coming years as a viable alternative to bank lending.”
SUPPER London Founder & CEO, Peter Georgiou, commented,
“I would like to thank Ian, Shaz and the Growthdeck team for facilitating our raise, and also our excellent group of new investors with whom we’re very excited to be working. This investment further supports SUPPER London’s opportunity to continue to enhance and broaden its luxury lifestyle concierge service to more partners and customers and thereby reinforce its position at the premium end of the market.”
Growthdeck expects to expand its debt offering (typically 2-4 year terms, interest payable quarterly at 10%, small equity kicker) to more companies in the coming months.
Growthdeck’s investment in SUPPER London qualifies for tax reliefs under the Enterprise Investment Scheme (EIS). EIS is an investment scheme which allows private investors to make tax savings by investing in growth businesses. The EIS allows investors to:
- Invest up to £1million per annum
- Reclaim 30% of the cost of investment against their income tax bill
- To not pay Capital Gains Tax (CGT) on any gains realised after three years
- Claim further income tax relief should an investment result in any form of loss
- Defer capital gains tax due on the sale of another asset by re-investing the gain in an EIS-qualifying company
- Save inheritance tax on any EIS-qualifying shares held for over two years
Growthdeck offers tax-efficient investment opportunities in UK growth businesses to Sophisticated and High Net Worth Investors, with a minimum investment of £5,000.
The company offers a comprehensive service to investors, including detailed upfront due diligence on all investee businesses, post-investment monitoring and reporting and a strong focus on achieving an exit for investors. Its focus is on long-term business viability: companies must have strong management, realistic business plans and operate in growth sectors. The majority of its investment opportunities are eligible for tax breaks under the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS).
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. Your capital is at risk. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
About SUPPER London
SUPPER London is the capital’s luxury food and drink delivery service. Strongly believing that delivery should be done better, SUPPER London offers both restaurant and retail partners and customers peace of mind with their team of conscientious drivers and specially-engineered delivery bikes, which keep food and drink in optimum condition at all times.