Billed as the largest equity-only raise for a hospitality business, WatchHouse’s latest funding round will support further growth in London and New York as the specialty coffee group seeks new international opportunities
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A WatchHouse store in Hampstead Heath, London | Photo credit: WatchHouse
London-based WatchHouse has raised £7.2m ($9m) in its final crowdfunding campaign to support UK and international outlet growth and scale its direct-to-consumer (D2C) business.
In the largest ever equity-only raise for a hospitality business, WatchHouse attracted funding from more than 1,400 investors and exceeded its expected raise by 700%. The specialty coffee group’s growing size means the round is the last time it can offer government-backed Enterprise Investment Scheme (EIS) eligible shares.
Founded in 2014, WatchHouse has become one of the UK’s most celebrated specialty coffee businesses and operates 18 outlets across the country, alongside a single site in New York – the brand’s first international location.
In a press release, the specialty coffee roaster and café group confirmed it will open a second New York site in October 2024 at the iconic Chrysler Building in Manhattan and is planning to build a state-of-the-art roastery and bakery facility in Brooklyn to support US growth.
WatchHouse has a pipeline of over 30 new stores set to open over the next 12 months – primarily in London, although the business is exploring opportunities in ‘other international territories’.
“Raising capital so fast, breaking the record for the highest non-tech equity raise in UK crowdfunding history, whilst also being one of the fastest ever raises sitting alongside household names, such as Revolut and Monzo, is utterly humbling. We closed the round much earlier than expected and now we can’t wait to get to work,” said Roland Horne, CEO and founder, WatchHouse.
In December 2023, WatchHouse completed a £7.9m ($10m) funding round to scale its UK and US store footprint and advance its ambitious goal to operate more than 500 outlets globally by 2033.
The specialty coffee group has grown its revenue from £7.8m ($9.7m) in 2022 to £16.6m (£20.8m) in the 12 months to April 2024.