Bean Box, a high-tech speciality coffee subscription service, raised $2.4m in a new round of funding to expand their business. The company uses a combination of clever technology to match buyers tastes with a growing portfolio of specialty coffee from small batch roasters. Yah!
The business is still pretty small, employing 20 people, but it’s adding 2 new roasters each month to the portfolio, and the all important Gross Margin is up to 40% – that’s the sales revenue the business keeps after taking out direct costs. The company probably needs to increase that a bit further to get to an Operating Profit, but it’s a health start, and revenues are growing around 200%.
The company purchases several lots each year from the Cup of Excellence which, according to Bean Box, has partnered with the company exclusively to do this, allowing Bean Box to claim that these highest-rated micro lots are only available on their service.
The business says that demand for Speciality coffee has risen over the lockdown, and this has led them to the conclusion that they should focus on the home market. Indeed as a recent report from the NCA showed – it is speciality coffee that is going to drive the industry back to recovery.