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Cheran's Bakery

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Kent based baker of luxurious sweet treats sold online & from our five shops. £1.2m+ Sales since launch!

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Funded 22 Dec 2023
£225,001 target
£325,482 from 0 investors
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Business overview

Location Sittingbourne, United Kingdom
Social media
Website www.cherans.com
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 13970243
Incorporation date 11 Mar 2022
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Investment summary

Type Equity
Valuation (pre-money) £3M
Equity offered 6.97%
Share price £2.73
UK tax relief

EIS

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Business highlights

  • Rapid growth! 14 Months: 5 Shops & Central Bakery
  • Handmade indulgent treats, beautifully packaged
  • Growing online with interactive website for gifts
  • £1.2m+ Sales since launch! GP over 60%*
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Key features

  • Secondary Market
  • Nominee investment min. £10.92 +
  • Direct investment min. £25,000.00 +
  • Idea
  • Investor Perks
  • Key Information
  • Team
  • Updates
  • Investors 0
  • Discussion
  • Documents

Idea

Introduction

Cheran's Bakery hand make the most indulgent and creative sweet treats, that are beautifully presented in Cheran's' packaging and sold exclusively through our growing chain of 5, soon to be 6 beautiful shops.

We bake every day to deliver the freshest and most luxurious experience to our customers who often share the experience with their friends and loved ones, increasing brand awareness.

Our high quality, eye catching shop designs convey a message of quality.

This includes our 'Instagrammable' products and packaging which our customers clearly enjoy - in the short time since our launch we have gained over 24,000 followers across our social platforms.

Our focus on creating amazing experiences means our customers help us spread the word.

Substantial accomplishments to date

💡 March 2022 - The idea was born!

1️⃣ June 2022 - Sittingbourne shop opened with bakery at rear

2️⃣ November 2022 - Canterbury shop opened

3️⃣ February 2023 - Rochester shop opened

🧁 March 2023 - Moved bakery to larger production premises

4️⃣ May 2023 - Faversham shop opened

5️⃣ July 2023 - Maidstone shop opened

🎂 August 2023 - Interactive website and cake builder launched

👑 We have completed our first corporate orders, with clients including Netflix's 'The Crown' and Tremco

📈 We sell high margin products with advantagous tax position (Zero Rated VAT on most of the items we sell) for higher retained profit.

🍰 We have sold 60,000+ indulgent brownies, 30,000 blended milkshakes and more than 100,000 cookies have been sold to tens of thousands of loyal customers

📱 We already have over 24,000 social media followers

🪪 More than 20,000 customers already signed up to our in store loyalty scheme

💸 We have seen over 500% increase in overall shop revenue alone from Q2 2022 to Q2 2023*

💰 In 2023 alone we have generated over £900,000 in revenue, and sold over £1.2M since launch*

* Based on unaudited management accounts

Monetisation strategy

With a full year of sales history we are better able to refine our opening times to better control costs going forwards.

We currently have 5 gorgeous shops (soon to be 6) that really stand out on the high streets!

Each also offers delivery via Justeat, Deliveroo & Uber.

Everyone has a birthday so Cherans.com website has launched a unique interactive 'cake builder' as well as other amazing sweet treat and gifting options.

Corporate gifting has recently begun whereby we offer clients a bespoke service of brownies or cookies along with client brochures or other contact information to send on their behalf to customers.

Spring 2024 will see us launch our events and pop-up division that will help spread the word far and wide at fayres, festivals and other outdoor events.

Use of proceeds

All funds will be used to grow brand exposure on our goal to generate greater revenues;

£75,000 Will bring forwards each additional shop in the pipeline. Any over funding will bring additional shops.

£100K will help expand the brand's reach with the launch of pop-up events. Costs include refrigerated vehicle, catering vehicle and prestige marquees.

£50,000 Marketing budget to put Cheran’s birthday cakes and online treats in many more of the 60+ million mouths in the UK.

Investor Perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Key Information

Outstanding Debt

The company has three outstanding loans.

1. A £106,800 loan from Celtic Bank Corporation with a fixed fee of £14,012. This is repaid over a period of 18 months via a percentage of daily card payments from two locations. with a minimum amount of £6,712 per 60 day period.

2. A £78,000 loan from the Kent & medway business funds Innovation Loan with 0% interest. This is repayable in Monthly instalments over 5 years beginning in December 2023.

3. A Director's loan of £215,000 with £193,000 outstanding, with 0% interest. This is repaid in monthly instalments of £2,233, in lieu of wages across 7 years.

The funds raised from this investment round will not be used to repay these loans.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Cheran's Bakery has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 27 October 2023 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £3,003,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Republic Europe.

Pitch type

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Equity Offered

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When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Republic Europe campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Republic Europe will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Republic Europe will not benefit from any rights under a shareholder agreement. As a result, Republic Europe will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

If available, this is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer or using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Republic Europe. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

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