A dog-welcoming coffee shop business with premises across south Wales and south-west England is set to grow following a £1.7 million investment from the Development Bank of Wales in a deal advised on by Grant Thornton Corporate Finance.

Coffi Lab has five coffee shops in Cardiff and the surrounding areas, two in Monmouthshire and two in England, with a third opening in Bristol in January. Established in 2021, owner James Shapland started the business after spending 10 years as founder and CEO of Coffee#1, before selling the chain to SA Brains in 2011.

After exiting Coffee#1, James was keen to establish a chain of premium, community-based coffee shops which would welcome dog-owners and their four-legged friends, along with providing exceptional coffee and a quality food offering.

The business now plans to open a number of new Labs in south Wales and the south-west of England, backed with investment from the Wales Flexible Investment Fund. The expansion plans are due to create 40 new jobs over the next 12 to 18 months.

James said: “When I started Coffi Lab it began with an introspection of what mattered to me. Inspired by my beautiful Fox Red Labrador Dylan, I wanted to create a space where we could welcome dogs with open arms."

"Beautiful, open venues; a focal point of leafy neighbourhoods where family and friends could come together without having to leave their canine companions at home. We focus on exceptional coffee, warm hospitality and quality food led by taste and provenance."

“We have invested heavily in our infrastructure to aid smooth and efficient growth. Last year we opened our Coff Lab Roastery and Bakery as well as a central kitchen which has enabled us to deliver seasonal menus and develop relationships with wonderful producers across Wales. Our growth has enabled us to donate over £100,000 to Guide Dogs UK, sponsoring nine life changing Guide Dog Puppies to date.”

He added: “The investment we’ve had from the Development Bank of Wales means we’ll be able to leverage our investment, speeding up our roll out to bring our Labs to even more communities across Wales and beyond.”

Bethan Cousins, New Investments Director at the Development Bank of Wales, said: “Coffi lab has gone from strength to strength and have established a strong Welsh brand which has proven popular within their local communities. We were extremely impressed by the track record, strength and talent within the management team and are delighted to support their growth with this major equity investment."

“We look forward to working in partnership with the team to accelerate the next stage of their business growth plans as they expand.”

Acting as lead financial advisor to Coffi Lab, Jamie Roberts, Corporate Finance Partner at Grant Thornton said: “Coffi Lab’s brand identity resonates extremely powerfully with consumers and the business is undoubtably one of the most exciting growth stories in the consumer sector right now. We were delighted to advise James, Hannah and the Coffi Lab team on this transaction.”