Coffee shop group Insomnia has raised €4 million in funding, half in a rights issue, that will see property and retail entrepreneur John Clohisey join the board, writes Dominic Coyle.
Coffee shop group Insomnia has raised €4 million in funding, half in a rights issue, that will see property and retail entrepreneur John Clohisey join the board.
The group, founded in 1998, currently operates 11 outlets. It plans to use the funds to double this to 22 in the next 12 months, creating around 100 jobs.
The company said the latest fundraising valued the company at more than €10 million.
Mr Harry O'Kelly, chief executive of Insomnia Coffee, said: "The funding will allow us to capitalise further on the explosion in demand for ready-to-go premium coffee and gourmet sandwiches among Irish consumers."
He said the company was the largest non-franchised operator in the Irish premium coffee market. The group, incorporating the Bendini & Shaw chain that it acquired in 2002, says it sells more than one million cups of coffee a year.
The company said that turnover was expected to rise from around €5 million this year to €10 million by the end of 2005, mainly through the opening of new stores.
Mr O'Kelly welcomed the arrival of Mr Clohisey on the board, saying he would provide "valuable retail experience which will be critical for the future expansion of the business".
Mr Clohisey previously controlled Newhill, which owned 115 mainly Dublin-based Spar shops. It was sold to venture capitalists Electra partners for €47 million two years ago at the time Electra funded the management buyout of Spar franchise owner BWG.
