Connection Capital invests £3.6m in 23.5 Degrees

The company's expansion plan will see it open its 150th store within the next four years. The business has just opened its 53rd UK Starbucks store in Peterborough.

23.5 Degrees has expanded its headcount from 20 to 700 since opening its first store in Hampshire in 2013.

Connection Capital syndicates private equity investments to its private investor network on a deal-by-deal basis.

The investor said it expects the UK coffee shop market to continue to grow. It cited a study by consultants Allegra Studies that predicts the market will exceed 31,400 outlets by 2022 with a turnover of £13bn up from 24,000 outlets with £9.6bn turnover in 2017.

Previous funding
Connection Capital initially made a £5.6m growth equity investment in 23.5 Degrees in 2015.

Company
23.5 Degrees was founded in 2013 and is headquartered in Southampton. It was Starbucks’ first franchisee and now operates 53 stores in the UK. The company employs 700 people.

People
23.5 Degrees – Mark Hepburn (managing director).

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• Topics
• Expansion
• UK / Ireland
• Consumer
• United Kingdom