Loan secures recipe for growth

A couple who started a healthy dog food business by making home-cooked dishes for their cocker spaniel have secured a £1.5m MEIF II business loan to complete the fit-out of their new premises in Telford.

The loan is one of the largest to date from the Midlands Engine Investment Fund II and has been made through appointed fund manager, Frontier Development Capital. It will enable Different Dog founders Charlie and Alex Thurstan to create a new state-of-the-art kitchen to meet growing demand.

The company, which creates freshly prepared food from natural ingredients, has tripled its revenue in the last three years and has plans for further growth.

Different Dog was founded in 2017 after Charlie, who held a senior role with a leading pet retailer, became increasingly concerned about the quality of commercial dog food, which is typically made from ultra-processed ingredients, fillers and additives, and cooked at high temperatures.          

The couple initially started cooking food at home for their own dog and then began selling online. To date, they have raised more than £15m of equity investment from private investors.

Different Dog now employs around 120 staff, has B Corp status and offers 11 nutritionist-devised recipes. Customers subscribe online and the food is delivered directly using carbon-free couriers. The company currently feeds more than 20,000 dogs every day.

Alex Thurstan, co-founder of Different Dog, said: “We give our children home-cooked food every day. Good nutrition helps them thrive and grow – and dogs are no different. We set out to change dogs’ lives with real food and our customers tell us every day about the impact our food is having on their dogs’ health and wellbeing. The new kitchen is a big step forward for us, and will help us change the lives of even more dogs.”

Ryan Cartwright of Frontier Development Capital said: “Alex and Charlie are passionate about their vision to change dogs’ lives and have built a fantastic business with a strong and committed team. The new premises will give them a larger, more modern facility with capacity for future growth. We are pleased to support them in their mission.”

David Tindall, senior investment manager at the British Business Bank, said: "Supporting businesses with their next phase of growth is exactly what the Midlands Engine Investment Fund II was created for. With a proven successful model, Different Dog is an excellent example of how businesses can benefit from external finance to scale up and succeed further. “    

Henry Mounsey and Niamh Moody of Key Finance in London provided fundraising advice to the company.

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides equity investment up to £5m and debt finance from £25k to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Pictured: from left, Ryan Cartwright, Alex and Charlie Thurstan, Niamh Moody and Crumble