Coffi Lab secures US$2.15M funding to support expansion

UK – Dog-friendly coffeehouse chain Coffi Lab has announced it has secured a £1.7 million (US$2.15 million) investment from the Development Bank of Wales.

Coffi Lab has secured funding from the Development Bank of Wales, including a convertible-to-equity component, to facilitate its expansion across Wales and the southwest of England.

The investment will support the opening of four new outlets annually, creating 40 jobs within the next 12 to 18 months. Currently, Coffi Lab operates nine stores and employs approximately 160 staff.

Its tenth outlet is set to open in Bristol in January 2025. 

Launched in 2021 by James Shapland, Coffi Lab draws its name from the Welsh word for “coffee” and the Labrador breed.

Its first store opened in Monmouth in July 2021. The brand is known for donating all opening-day revenues from new locations to Guide Dogs UK, reflecting its commitment to community involvement.

Shapland, who previously founded Coffee#1 and sold it to SA Brains in 2011, emphasized that the company has heavily invested in its infrastructure to enable smooth and efficient growth. 

Last year, Coffi Lab established its own roastery, bakery, and central kitchen, allowing the business to offer seasonal menus and collaborate with local producers across Wales.

“The investment we’ve had from the Development Bank of Wales means we’ll be able to leverage our infrastructure, speeding up our rollout to bring our ‘labs’ to even more communities across Wales and beyond,” Shapland stated. 

The Development Bank of Wales, a subsidiary of the Welsh government, has a history of supporting the coffee sector, including investments in Quantum Coffee Roasters and Ground Bakery.

Bethan Cousins, new investments director at the bank, highlighted Coffi Lab’s strong brand presence in local communities and praised the management team for its proven expertise.

“We are excited to support their growth and work in partnership to accelerate their expansion plans,” she said. 

Jamie Roberts, corporate finance partner at Grant Thornton, acted as the lead financial advisor on the transaction.

He described Coffi Lab as one of the most exciting growth stories in the consumer sector, attributing its success to a brand identity that resonates strongly with consumers.  

This investment positions Coffi Lab to expand its footprint and strengthen its ties to local communities while scaling operations in new markets. 

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