UK prebiotic soda start-up Xoxo has raised £2.5m ($3.1m) in a fundraising round, with backers including JamJar Investments - the venture capital investment fund of ex-Innocent Drinks owners.
JamJar's undisclosed investment marks the firm's first beverage play and its founders touted Xoxo's “potential to disrupt this giant category”.
Xoxo plans to use the capital raise to expand its presence in the UK, though would not divulge details of its channel strategy.
“The significant demand for Xoxo soda has affirmed our belief that the market was ready for a new drink that resonates with a type of new consumer,” Xoxo CEO and co-founder Rory Paterson said.
“We are excited that our brand is already disrupting the legacy soft drinks market – which has been complacent for too long. The reception both in the UK and across wider Europe has far exceeded our wildest expectations, and the latest fundraise will help us further scale this vision.”
JamJar was founded by Richard Reed, Jon Wright, Adam Balon, and Katie Marraché in 2012, following the sale of smoothie brand Innocent Drinks to The Coca-ColaCo. The investment fund has backed a number of food related companies like Propercorn and Deliveroo but has not funded a beverage company before.
“We’ve looked at nearly every soft-drinks brand since we sold Innocent 13 years ago and Xoxo is the first we have invested in due to their incredible growth and potential to disrupt this giant category,” JamJar co-founder Richard Reed said.
Other investors included in this round are Döhler Ventures, GGF Ventures, Gfund and the Revery Group.
Xoxo was founded by Rory Paterson and Nick Janssen in 2022. Its products are sold in roughly 4,500 retail units across the UK and Europe including Germany, the Netherlands and Austria. It would not be drawn on further export plans.
Xoxo produced 100,000 cans last year and has said it is on track to sell approximately 250,000 cans by June 2024.
Last year, the soda brand conducted a fund raising round last year that took in £1.5m. That capital push included investment from APX Venture and Nextblue.
