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Rapidly growing pet food firm raises funds for further growth

Press release 06 January 2025

A Wetherby company that is one of the UK’s leading suppliers of raw pet food has secured a six-figure growth funding package from NPIF II – Mercia Debt Finance, which is managed by Mercia Debt as part of the Northern Powerhouse Investment Fund II (NPIF II).

From left to right we have Jess Warneken, Gary Whitaker and Lizzy Upton standing in front of the final production.

The funding will enable Naturaw Pet Food to continue its rapid expansion following an 18-month period in which it has almost doubled the size of its team from 18 to 35, and won the King’s Award for Enterprise for excellence in sustainable development. The company has just doubled its floorspace by taking on a second 15,000 sq ft unit at Thorp Arch Estate. The NPIF II funding will enable the business to complete a fit-out and provide additional working capital as it steps up production.

Naturaw provides high-welfare meat from British farms in plastic-free packaging. The company, which is a registered B Corp, supplies over 15,000 customers consisting largely of pet owners, but also including independent pet shops and grooming parlours.

The business was founded by Jess Warneken in 2014 after her Rhodesian Ridgeback, Louis, developed recurrent ear and skin problems. She started to feed him a fresh meat-based diet which transformed his health. Given the difficulties in sourcing high quality raw food, Jess saw the opportunity to start Naturaw. She was joined by her partner, Tom Johnson, who created the brand identity and later by Chris Broadbent, an experienced company director.

The couple used the proceeds from the sale of their house to set up their first manufacturing operation in 2018. Since then, the company has been doubling its turnover every two years and moved to larger premises three times to keep up with demand. It now offers over 20 recipes, with all production, packing and distribution carried out from the Wetherby premises.

Jess Warneken, founder and Director, said: 

Dogs are designed to eat fresh, natural, raw food rather than processed ingredients and we’re passionate about creating the best raw food we can. As demand continued to rise, it was clear we had outgrown our existing premises and we had no option but to take on and fit out a second unit. Together with the funding from Mercia and NPIF II, we now have both the space and the finance we need to continue growing the business.

Gary Whitaker of Mercia Debt added: 

Naturaw is a purpose-led business that has quickly built a following amongst pet owners and become a leader in its field. Access to funding is vital for fast-growing firms like these as they are constantly having to invest in bigger premises, new equipment and staff and they need more working capital. We are pleased to be able to support the Naturaw team as they take the business to the next stage of its development.

Lizzy Upton, Senior Manager at the British Business Bank, said: 

Naturaw is a brilliant example of a Yorkshire business using NPIF II funding to boost growth and unlock potential, supporting with increased team headcount and premises expansion. It’s this growth that helps to push the region forward and build a more resilient local economy.

Haroon Qammar, Senior Economic Development Officer with Leeds City Council, advised the company on business expansion.

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

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

Further Information

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Notes to editors

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.  

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
  • Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697

mercia.co.uk

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding.  NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development.
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

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