PRIVATE equity star Jon Moulton has increased his investment in La Favorita Delivered by 50 per cent ahead of the Edinburgh Italian food chain's move into Glasgow.
Mr Moulton has upped his investment in the business to £75,000 from £50,000 in a clear sign of confidence in its prospects.
The financier has made the move weeks after the Better Capital business he founded put the City Link delivery business into administration.
La Favorita Delivered is preparing to open its first outlet in Glasgow next month after developing a formula in its home city that has powered rapid growth in sales.
The privately-owned company sells Italian staples like pizzas and pastas. It has opened four outlets in Edinburgh, which provide a collection and delivery service that covers the city.
Chief executive Kenny Scott said the company is on course to record £4.5 million turnover for the financial year to 31 March.
He is confident La Favorita Delivered will catch on in Glasgow, although the firm will face fierce competition from established players.
He said the first outlet in Gibson Street in Glasgow's west end will serve a similar market to the cosmopolitan Leith Walk area in Edinburgh where the firm began life.
"The demographics are right. They are very similar to Leith Walk, which is great," said Mr Scott.
He noted 70,000 people live within five minutes of the Leith Walk outlet.
La Favorita Delivered is already developing plans to roll out across Glasgow. The company has secured a site in Bearsden and is looking for one on the south side of the city.
Mr Scott said the move into Glasgow is expected to pave the way for the business to expand across the UK. He aims to have 50 outlets in time.
Mr Moulton is one of a number of investors that have agreed to support the company's campaign to raise £200,000 expansion funding through the InvestingZone crowd funding operation. The company is offering a five per cent stake in the business in the exercise, which values it at £4m.
Some 33 investors have offered to provide a total of £166,620 to date.
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