Chilango secures £2.2m via Crowdcube mini-bond to fund restaurant expansion.
The Mexican restaurant chain closed the largest funding round in Crowdcube history with backing from nearly 750 retail investors.
Chilango is a London-based Mexican restaurant chain operating multiple sites across the capital.
Chilango has secured £2.2m through a mini-bond campaign hosted on the Crowdcube platform, marking the largest amount ever raised on the site. A total of 749 individuals contributed to the round, which offers an 8 per cent gross interest rate per annum over a four-year term.
The proceeds from the raise will be directed towards opening the next three restaurants for the Mexican food chain, adding to its existing seven locations across London. The campaign also offered tiered perks for investors, ranging from free burrito vouchers to VIP party access and weekly meals for top contributors.
The raise highlights the growing appetite for alternative debt financing options among British small and medium-sized enterprises, bypassing traditional banking channels to engage directly with consumers.
From the founder
"The brand awareness and engagement we created, together with Crowdcube, is simply off-the-charts. The bond has been a massive success; we not only raised the capital we needed to open our next batch of restaurants, but have also created 749 brand ambassadors to support our growth. The team at Crowdcube made the whole process straightforward and efficient and it’s an experience we look forward to repeating. Debt options for SMEs in Britain have expanded in a major way, and it was delight to help spearhead this new and exciting route to funding."
Eric Partaker
Co-founder at Chilango
Investor perspective
"It’s great that the Burrito Bond has attracted so many people who not only believe in Chilango’s future as a viable, profitable business, but are also fans of its fabulous fresh food. This was the first mini-bond to launch on Crowdcube and it has shown that the British public is really open to alternative ways of getting a return on their savings beyond banks and building societies."
Luke Lang
co-founder and CMO, Crowdcube
Use of funds
- 01Fund the next phase of growth