Knoops is planning to more than double the size of its business in 2024 following a milestone £8.3m fundraising.
The fundraising, led by a £5.5m investment from London-based retail and property group Morley Stores, leaves the chocolate drink concept debt-free and positioned for higher profits next year.
It will allow Knoops to expand its network of UK stores as well as enhancing its multichannel offer, which allows guests to purchase Knoops chocolate flakes for at-home use.
Knoops will press ahead with its pipeline of an additional 20 openings from March 2024, targeting major cities and university towns, with medium-term ambitions for 200 stores across the UK.
The business currently has 15 sites, including seven in London, with plans in place to take the estate to 20 sites nationwide by March.
The expansion will include new openings in Edinburgh, Leeds, and Exeter, owing to growing demand for artisan drinking chocolate following coffee in taking root on British high streets, according to the brand.
Knoops has also recently launched a new app allowing customers to tailor their own drinks.
The business, founded by Jens Knoop in Rye, East Sussex, in 2013, offers a range of barista-prepared drinks from a menu of over 20 different strengths and styles of chocolate.
Executive chairman and CEO William Gordon-Harris said: “When I first went into Jens’ shop in Rye five years ago, I knew he was onto something. The business clearly had amazing potential and now thousands of customers are enjoying their “Knoops moment” every single week thanks to Jens’ vision. Our stores are doing a roaring trade at all times of the day and are hugely popular with customers of all ages.
“Following this fundraising, Knoops is in a fantastic position to grow from a position of real financial strength. We have a huge market to shoot for and an easily scalable business - we’re still on the runway when it comes to how far Knoops can go.”
John Egan, a non-executive director for both Morleys and Knoops, said: “Bernard Dreesmann, the chairman of MSL, spotted the Knoops brand in High Street Kensington and he was incredibly impressed by Jens’ concept and the vision and strategy for the business set out by William.
“Our significant investment in Knoops is part of the group’s diversification away from the core department store business. We are delighted and excited to be part of the Knoops journey, and see the business creating a new category in the hot drinks market.”
