Doughnotts secures MEIF II funding to support franchise growth

Founded in 2015, Doughnotts has grown from a small kitchen start-up to a multi-site retail operation with stores in Nottingham, Lincoln and Beeston. The business manufactures fresh doughnuts daily from its Nottingham headquarters, supplying both its own retail network and a range of local cafés and eateries, including supermarket partners such as the Co-Op.

Operating a diversified B2C and B2B model, Doughnotts offers in-store retail, click-and-collect, delivery, and catering for corporate events and celebrations. The company specialises in handcrafted doughnuts produced using a 100% vegan dough base. The menu features seasonal ranges and limited-edition flavours, recently including Peppa Pig Piggie doughnuts, Maple & Bacon special and Mint Feast doughnuts, to name a few.

The funding from the Midlands Engine Investment Fund II will support the next phase of the company’s growth to develop a structured franchise model in partnership with Ashtons Franchise Consulting. The debt finance will also be used to refurbish and equip stores in line with franchise requirements and to provide additional working capital as the business expands. 

Wade Smith, Co-Founder and Director of Doughnotts

“We are delighted to secure this investment as we enter the next phase of our growth. The funding enables us to formalise our franchise model, invest in our store estate and continue expanding the Doughnotts brand into new locations. We have built a loyal customer base since founding the business in 2015, and this support gives us the confidence and capability to take the brand into its next chapter."

Wade Smith, Co-Founder and Director of Doughnotts

“Doughnotts has developed a distinctive regional brand built on product quality and strong customer loyalty. We were particularly impressed by the clarity of the growth strategy and the scalability of the franchise model alongside an established retail network. The funding is structured to provide the flexibility required to scale in a measured and sustainable way. This facility reflects our confidence in the strength of the management team and the business model, and we look forward to working closely with the team as they deliver the next stage of growth."

Sabrina Mahmood, Investment Manager at Maven

“The Midlands Engine Investment Fund II is dedicated to supporting ambitious businesses with the funding they need to grow and scale. This latest investment in Doughnotts' franchise model will strengthen its foundations, enabling sustainable expansion into neighbouring regions, allowing it to deliver its bespoke services to an even wider customer base. The Fund backs a diverse range of ambitious businesses across the Midlands, and we encourage entrepreneurs and businesses seeking investment to get in touch with our fund managers to explore how MEIF II  can support their next stage of growth."

David Tindall, Senior Investment Manager at the British Business Bank

This latest investment adds to a growing list of businesses backed by MEIF II - Debt Finance East and South East Midlands. To date, the Fund has backed a diverse range of businesses including, Acres Insurance Brokers, a special agricultural insurance broker, Sleaford Building Services, mechanical, electrical and construction contractor, Lemon and Lime, a home staging business, TextureJet, a DeepTech firm, Sunset Commercial, a commercial brokerage business, Panoramix, an IP law firm, Advance Tapes, an independent adhesive tapes manufacturer, DUKE Distribution, a logistics and trackway installation provider and Vision4Sport, a sports hospitality specialist.

As Fund Manager of MEIF II - Debt Finance East and South East Midlands, Maven can provide business loans from £100,000 to £2 million to support both earlier and later stage businesses with real growth potential across a range of sectors. If your business, or the business you advise, is considering debt finance to support future growth please, click here.