Burrito restaurant chain Chilango is seeking to raise another £1m through crowdfunding, as it aims to expand to 50 sites over the next five years.
The company, which last year raised £2.1m through a "burrito bond" with Crowdcube offering 8% p.a. interest over the four years of the bond, will this time offer investors a 3.26% stake in the business for their £1m investment, effectively valuing the company at just over £30m. Once again it will work with Crowdcube to secure the funds.
Whereas the burrito bond required a minimum investment of £500, this time investors will be able to offer up as little as £10 each.
Chilango said it would use the funds to help kickstart the next phase of its expansion, with ambitions to grow five-fold in the next five years. Chilango currently has nine sites, all of which are in London, with a 10th planned for Brewer Street in Soho soon.
Founders Eric Partaker and Dan Houghton (pictured, L-R) said they wanted to look at potential sites in over 20 cities throughout the country, as well as introducing international franchises with initial focus on Dubai and the Middle East.
The £1m would fund the launch of three UK restaurants.
To strengthen its management team, three existing investors with a background in hospitality have been appointed as non-executive directors:
Simon Kossoff, chairman of Carluccio's Italian restaurants
Dan Henshall, former chief executive of Krispy Kreme UK and current CEO with Farrow & Ball
Chris Moore, former chief executive of Domino's Pizza UK
So far, Chilango has raised £654,100 from 153 investors, with the largest investment at £85,000.
It's £2.1m burrito bond financed the opening of three new sites, creating 40 jobs in 12 months.
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