Mexican restaurant group Chilango, which yesterday closed its latest crowdfunding round after raising just over £3.4m, plans to use the new investment to kick start its strategy to open 50 sites across 20 UK cities by 2021.
The group, which currently operates nine sites in the capital, will open its long awaited tenth unit in Soho’s Brewers Street at the turn of the year.
The group also plans to introduce international franchises, starting with Dubai in the Middle East. It said that its expansion plans will generate around 600 new jobs.
The recent fundraising campaign target was originally £1m which Chilango surpassed within 11 days, overfunding by 343% to secure £3.43m.The 1519 people who invested received an 10.36% equity stake, with the largest investor putting in the significant sum of £400,000.
Eric Partaker, co-founder of Chilango, said: “Once again the power of crowdfunding shows its might. We’ve now completed back-to-back, multi-million pound debt and equity raises on Crowdcube to fund our growth. People love the buzz and immediacy of crowdfunding and nothing beats letting our guests and fans support and profit from our success. More power to the people!”
Luke Lang, co-founder of Crowdcube said: “As before, Chilango has excited investors with the passion and high quality of its proposal and Eric Partaker’s video pitch particularly grabbed people’s attention as it was so vibrant. Also, the company is backed by a lot of top execs from high profile brands in the hospitality sector and that’s always reassuring for our subscribers.”
M&C revealed last month that Chilango has been inundated with property offers for sites across England, Wales and Scotland since it launched its fundraising campaign on CrowdCube.
The Partaker and Dan Houghton-led company has been presented with more than 100 potential locations and as a result have so far made offers on five new sites.
Partaker told M&C that many of the investors are the same people who invested in the Burrito Bond last summer demonstrating the loyalty that has developed to the brand.
Industry investors include Simon Kossoff, Chris Moore, Kevin Bacon, Frank Bandura and Mike Dowell.