London-based Pact Coffee has announced a £2m funding round that will be led by MMC Ventures, topping up existing investment from Connect Ventures, Songkick founder Ian Hogarth, Index Ventures’ Robin Klein and Rowan Gormley, who founded Naked Wines.
The subscription coffee business was set up just two years ago by Stephen Rapoport with the aim of bringing better coffee to UK consumers. Having raised seed funding in March last year, the company has enjoyed growing success, employs 32 people and is now looking to double its eight person product team – which the latest round of funding will allow it to do.
“I’m delighted to be announcing our Series A funding and am very proud of the calibre of investors who share in our vision of building friendships through flavour, technology and craft. The investment will be used to accelerate already exceptional growth, as well as growing our team from 30 to 50 in the UK,” said Rapoport. “This model is not as simple as it looks from the outside; the frictionless customer experience has taken 18 months’ hard work and we are still just 5% of the way there. Pact’s success is dependant on maintaining the world-class quality of our team, and the strength of our board and advisors.”
Camilla Dolan, Investment Manager at MMC Ventures, added: “MMC is delighted to be working with Stephen, a seasoned entrepreneur and early advocate of community based consumption, and the rest of the Pact team. Pact has a rare ability to connect with customers, improving users everyday lives by turning the coffee experience from the mundane into a cherished moment. Pact’s focus on quality and community building is, to us, what sets Pact apart from other subscription businesses we have seen and was key to our decision to back the team.”