Dragons’ Den winning food brand secures Northern Powerhouse funding

The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in the Yorkshire and Humber region since the launch of the £660m fund in March this year.

Based in Harrogate, Kirsty’s, a “free from” range of ready meals, has raised £2m from NPIF II – Mercia Equity Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund II.

Building on the first Northern Powerhouse Investment Fund, businesses across the North can now access up to £5m in equity finance with NPIF II to start up, scale up or continue on their growth journey.

With the funding from NPIF II, Kirsty’s will be able to launch new “food to go” ranges and develop other new products.

The investment, which is the first from NPIF II, is expected to add 15 new jobs to its 55-strong team in the next six months at the company’s Harrogate factory.

As part of the deal Ian Kent, the former commercial director of Stateside Foods, has been appointed as chair.

Created and launched by Kirsty Henshaw, Kirsty’s was founded in 2009 after Henshaw discovered her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance.

With so few healthy and tasty food options available to her, she began experimenting with different recipes and started selling small batches of ice cream to health food stores.

She took her business to Dragons’ Den in 2010. After successfully securing backing from Peter Jones and Duncan Bannatyne, Henshaw bought back their shares three years later after launching her meals into supermarkets across the country in 2012.

In 2020, Kirsty’s opened a factory in Harrogate, bringing all its manufacturing operations in-house. The company today supplies all major supermarkets and operates the only allergen-free factory of its size in the UK.

Henshaw said: “Nothing beats fresh, home cooked food, however with modern life being busier than ever, we know that’s not always achievable, especially for those with allergies who have to prepare everything from scratch.

“We set out to create a range of healthy, convenience foods that everyone could enjoy whether they have an allergy or not.

“Our success is a real testament to our hard-working team. This funding will enable us to take the business to a new level and fulfil its true potential.”

Chris Borrett, of Mercia Ventures, said: “As our population becomes more aware of what they consume, and with busy lives and more dual income households, Kirsty’s is poised to truly lead the healthy convenience and allergen-free sectors.

“With strong relationships with all the major UK retailers and a roadmap of exciting new products, we are excited about the growth journey ahead.”

Ken Cooper, managing director at British Business Bank, added: “Like so many of the UK’s entrepreneurs Kirsty has a dedication to making her business a success.

“For 15 years consumers have sought out her product, and now with an injection of the right kind of finance she will be able to grow that market.

“This investment shows the Northern Powerhouse Investment Fund II is open for business and available to support ambitious businesses across the North.”

The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25,000 to £2m and equity investment up to £5m to help small and medium sized businesses start up, scale up or stay ahead.