Subscription coffee start-up Pact Coffee bags £2m Series A investment
MMC-led funding will fund 20 hires and accelerate growth
Online coffee subscription start-up Pact Coffee today announced the completion of a £2m Series A funding round, led by tech-focused venture capital firm MMC Ventures.
Founded by Stephen Rapoport in 2012, Pact Coffee operates a subscription service in which customers can order freshly roasted beans from worldwide locations for delivery at home.
The Bermondsey-based start-up says it pays above the Fairtrade rate for all the coffees it sources, with the beans hand-roasted in Hertfordshire before delivery.
Since raising a previous seed round last year, Pact Coffee said it has seen “significant” growth, expanding its team to include 32 employees.
The £2m Series A backing was led by new investor MMC Ventures, with input from previous seed backers Connect Ventures and angel investors including Robin Klein of Index Ventures, Songkick founder Ian Hogarth, and Rowan Gormley, founder of Naked Wines.
Pact Coffee said the backing would be used to grow its team to 50 and accelerate further growth for the business.
Stephen Rapoport, founder of Pact Coffee, said: “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.
“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 dependent on maintaining the world-class quality of our team, and the strength of our board and advisors.”
Camilla Dolan, investment manager at MMC Ventures, said: “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.”