BigHospitality's sister site MCA reports that the business, led by former Nando’s India commercial director Eve Bugler, is targeting sites across London and the South East, and seeking revenue in excess of £20m and a valuation of £40m+ by FY 2024.
In an investor pack, Bababoom said delivery was key to its expansion, having seen a 60% increase in delivery orders in the last six months, and a new optimised product range to be launched in Jan 2020.
The company is targeting Zone 1-2 locations, including Kings Cross, Soho, Covent Garden, Victoria, Shoreditch, Spitalfields and London Bridge, with high footfall and a strong Deliveroo potential.
The fundraise values the business at £3m, with a private round now open, and a Seedrs round to launch on 11 November.
The business plan sets out three possible exit options - a trade sale by a large restaurant group, a partial acquisition or buyout by a speciality private equity investor, or investment from a generalist private equity group.
Bababoom’s current investors include Charlie Carrol from Flat Iron, ex Nando’s CEO David Niven, Wahaca founder Mark Selby, and Oakman Inns CEO Peter Borg Neal.
After launching in Battersea in 2016, Bababoom reported sales of £650k in 2017 (up 9% in like for like growth) and £718k in 2018 (+10% LFL).
The second site in Islington broke even after seven months, with year two run rate sales up 14% in like for likes.
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