Food firm KC Peaches has secured €55,000 in loans through Grid Finance, an Irish P2P lending agency that was set up in 2013.
The loan to KC Peaches attracted lenders from the pool of users already on Grid Finance's platform, as well as KC Peaches' own customers and supporters in the community
The firm said that the funds will be used to undertake renovations in the wholefood specialists' four cafe locations across Dublin city centre.
KC Peaches owner, Katie Cantwell, raised a total of €55,000 at 8.3% interest through its latest Grid Finance fundraising effort.
The firm's operations include a whole food shop, cafes and a wine cave, and was established in 2006.
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KC Peaches booked a profit of €103,000 in 2014, while creditors at year-end almost doubled to €1.2m. Interest-free loans owed by the firm to founders Cantwell and Vincent Carroll totalled €211,000 in the 2014 filings.
KC Peaches previously raised €7,000 through Grid Finance to help buy a truck.
Said Cantwell: “Being able to offer our customers the opportunity to invest in KC Peaches and earn a return was a new way for us to show our customers real appreciation for their continuous support over the years.”
Grid Finance launched its services in September 2014, using a financial model based on Village Savings and Loan Association (VSLA) schemes in East Africa that CEO, Derek Butler, witnessed as part of his work with Goal.
Butler was the financial controller in Uganda for Goal and then the country director in Haiti following the earthquake.
He said: “Since GRID Finance launched six months ago we have been really impressed by the levels of interest from business owners wanting to explore new ways of financing their business.
“A willingness by companies like KC Peaches to adopt new ways of financing is a clear sign that SMEs in Ireland are leading the way in business management innovation.”
Grid Finance was founded by Derek Butler and Sean O'Riordan, both of whom have significant experience in the financial sector.
Among the company's investors is Enterprise Ireland, which gave Grid Finance €125,000 in August 2014.
