LONDON, United Kingdom – Lily Simpson, founder of healthy food delivery company The Detox Kitchen has raised £2m in funding to kickstart large-scale expansion plans.
Backed by London-based venture capitalists, Encore Capital, Simpson said the latest cash injection will be used to open 10 new delis over the next three years.
Launched in 2012, The Detox Kitchen’s popular delivery service has attracted a number of high-profile celebrities including Gwyneth Paltrow, its phenomenal success allowing the mother of one to open 2 brick and mortar delis in London’s Kingly Street and Fitzrovia.
Having caught the attention of investors keen on entering the wellness sector, the 30 year old entrepreneur explained:
“The healthy food market is expanding quickly and investors are showing great interest in the space, but if you have the right business model and a strong team around you, you will stand out.”
Simpson, who revealed she ‘just clicked with Encore’, told Welltodo that the backers, including restaurateur Jyotin Sethi, of Gymkhana in Mayfair and Bao in Soho, really believed in her vision.
“They had a really strong understanding of the health food industry and I knew that they would be able to provide strategic expertise,” she said.
Currently turning over almost £5 million a year, securing an extra £2m in funding means Simpson is now on course to scale The Detox Kitchen at an ambitious rate, a strategy Encore is keen to be a part of.
“As regular customers we fell in love with the Detox Kitchen brand and what it stands for – delicious, clean and convenient food,” explained Ed Shah, Partner at Encore. Adding, “our ambition is to support the team, led by Lily, to expand the business and bring its wonderful food and drinks to a wider audience, both in London and further afield.”
For The Detox Kitchen, raising extra capital has the potential to really take the business to the next level.
Here Simpson explains what wellness startups should consider when seeking investment:
1. It’s always worth having conversations with investors much earlier than you anticipate needing the money because the process can take longer than expected. It took me 4 months to raise all of the money I needed.
2. Get a good lawyer. Having someone you can absolutely trust is so important and takes away a lot of the stress of raising capital.
3. Be prepared. If you are raising a significant amount of money investors will want a lot of detail about the way the current business is running. You need to be incredibly organised and have that information prepared and at your fingertips, otherwise the process will become extremely drawn out.
4. Know what you want out of the relationship. For me it was money to expand, but also expertise to help scale the company quickly and efficiently. Knowing what you want can help you to negotiate, and understanding what you feel comfortable with will mean you feel more clear about making big equity decisions.