Mad Group, operator of the Habitual Fix and Mad Mex fast-food chains, is gearing up for an equity crowdfunding campaign aimed at raising as much as $1.5 million in growth capital.
Group managing director James Tucker said the offer, being made through the Snowball Effect platform, was expected to open within the next fortnight.
The company is looking to raise $1 million to $1.5 million, which will be primarily used to open new Mad Mex stores. Mad Group holds the New Zealand master franchise for the licensed taco and burrito chain, which was founded in Australia in 2007 and has more than 40 outlets across the Tasman.
The firm has established six Mad Mex stores in this country since 2013 and is planning to open another five this year.
The Mad Mex stores are company-owned, while the 15 Habitual Fix sandwich and salad outlets are operated by franchisees. The two brands employ more than 200 staff.
Tucker said another five Habitual Fix stores were expected to open this year. Mad Group wants to have more than 100 franchised and company-owned stores, across both brands, in operation within five years.
Tucker said the company was anticipating revenue in this financial year of more than $5 million, which was expected to double in the following year.
The firm was profitable, but was still in the process of finalising its bottom-line projections, he said.
"The new capital will help to keep the momentum going, basically." Tucker said the Habitual Fix and Mad Mex brands had roughly 30,000 Facebook likes and an email database of about 15,000 customers.
Mad Group, which was ranked eighth in last year's Deloitte Fast 50, with revenue growth of 723 per cent, was planning to use those resources to promote the crowdfunding campaign to customers, he said.
Tucker said the company was yet to finalise how much of the business would be sold through the offer.
A Snowball Effect offer by wine firm Invivo Wines had reached $1.7 million yesterday, making it New Zealand's biggest equity crowdfunding campaign to date.
• Operates six company-owned Mad Mex stores and 15 franchised Habitual Fix outlets.
• Anticipates revenue of more than $5 million in the current financial year, which is expected to double in the next.
• Wants to have more than 100 franchised and company-owned stores, across both brands, in operation within five years.