The London-based chain pulled in £2,160,000 in funding for its “Burrito Bond” mini-bond product.
The bond entitles investors to a return of 8 per cent gross interest per year along with two free burrito vouchers, and those who put in more than £10,000 are entitled to a free meal each week. The money came from 749 investors who put in an average of £2900 each, and the largest individual investment was for £50,000. Mini bonds are unlisted and non-transferable bonds which can be a little risky for investors but provide a solid return if successful. Eric Partaker, co-founder of Chilango, said: “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 bond was the first launched on Crowdcube, but other companies have used the technique successfully by launching on their own, including Hotel Chocolat, King of Shaves and John Lewis. Related: Crowdcube targets growing businesses with new mini-bond funding optionShare this story