The Northern Powerhouse Investment Fund II (NPIF II) has completed its first equity investment in the Yorkshire and Humber region since the launch of the £660m fund in March this year.
Based in Harrogate, Kirsty’s, the UK’s leading ‘free from’ range of ready meals, has raised £2m from NPIF II – Mercia Equity Finance, which is managed by Mercia Ventures and part of the Northern Powerhouse Investment Fund II.
Building on the first Northern Powerhouse Investment Fund, businesses across the North can now access up to £5m in equity finance with NPIF II to start up, scale up or continue on their growth journey.
With the funding from NPIF II, Kirsty’s will be able to launch new ‘food to go’ ranges and develop other new products. The investment, which is the first from NPIF II, is expected to add 15 new jobs to its 55-strong team in the next six months at the company’s Harrogate factory. As part of the deal Ian Kent, the former Commercial Director of Stateside Foods, has been appointed as Chair.
Created and launched by Kirsty Henshaw, Kirsty’s was founded in 2009 after discovering that her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance. With so few healthy and tasty food options available to her, she began experimenting with different recipes and started selling small batches of ice cream to health food stores. Gaining in popularity and receiving interest from major retailers such as Tesco, she took her business to Dragon’s Den in 2010. After successfully securing backing from Peter Jones and Duncan Bannatyne, Kirsty subsequently bought back their shares three years later after launching her meals into supermarkets across the country in 2012.
In 2020, Kirsty’s opened a state-of-the-art 100 per cent allergen-free factory in Harrogate bringing all its manufacturing operations in-house.
Kirsty’s ‘healthy’ ready meals are low in calories and free of allergens such as nuts, dairy, gluten and wheat. The company supplies all the major supermarkets and operates the only allergen-free factory of its size in the UK.
Kirsty Henshaw, founder of Kirsty’s, said: “Nothing beats fresh, home cooked food, however with modern life being busier than ever, we know that’s not always achievable, especially for those with allergies who have to prepare everything from scratch. We set out to create a range of healthy, convenience foods that everyone could enjoy whether they have an allergy or not.
“Our success is a real testament to our hard-working team. This funding will enable us to take the business to a new level and fulfil its true potential.”
Chris Borrett of Mercia Ventures said: “Kirsty is an incredible founder with a deep passion, an unstoppable drive and infectious personality. She has built a strong brand, a great team and a defensible platform for future growth. As our population becomes more aware of what they consume, and with busy lives and more dual income households, Kirsty’s is poised to truly lead the healthy convenience and allergen-free sectors. With strong relationships with all the major UK retailers and a roadmap of exciting new products, we are excited about the growth journey ahead.”
Ken Cooper, Managing Director at British Business Bank said: “Kirsty is emblematic of entrepreneurs in the UK and her dedication to her business over the last 15 years is the reason why consumers resonate with her product. Access to finance is an essential ingredient for businesses to flourish, especially in an environment where industries such as manufacturing are finding it increasingly competitive. This investment shows that with the right finance, tangible growth is possible. As the first equity deal for the Northern Powerhouse Investment Fund II, other business owners should look to Kirsty’s for encouragement that NPIF II is a catalyst to fulfilling their ambitions.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.