Redemption Roasters, the coffee company which supports prisoners into employment, has reached its £1.2m crowdunding target.
The ‘profit-for-purpose’ speciality coffee company has raised the sum through 179 investors on Crowdcube, which represents 5.17% equity.
Redemption has 10 London locations and 200+ wholesale clients, It reached £8.1m in sales during the last 12 months, EBITDA of £372k, and maintained a positive bottom line and achieving over 43% annual growth.
The Crowdcube round is part of a larger financing round in which the company has already secured £1.4m from external investors.
According to the company, individuals leaving prison with skills and employment are between 30% and 50% less likely to re-offend.
Redemption roasts 100% of its coffee in prison, offers a variety of barista and roasting training, and provides employment programmes. 20% of their staff are prison leavers or at risk of offending.
Part of the premium coffee sector, the company has identified a growing trend where consumers are inclined to support businesses that prioritize social responsibility.
With the funds, the company aims to scale its impact, expand sales channels, enhance e-commerce, and improve its operational efficiency and EBITDA margin.
Investors include Barrow Cadbury, Rothschild’s venture philanthropy arm, and the Treebeard Trust.
