Liverpool tea blender and distributor Stratton Tea UK secures £100,000 investment from River Capital – its second major cash injection in less than a year. Tony McDonough reports

Stratton Tea UK has secured its second £100,000 in less than a year as it sees growth in both staff and revenues.

Based in Liverpool, Stratton blends and trades premium teas, coffees and spices. It was founded in 2022 by tea industry veteran Razi Khan and achieved £700,000 in revenues in its first year. Its team has grown from one person to four.

In October 2023 LBN reported the venture had secured £100,000 from the Northern Powerhouse Investment Fund, secured via Liverpool-based SME funding specialist River Capital.

Now River Capital has injected another £100,000 into Stratton from its own Business Growth Loan Fund. This will support the company’s growth into the consumer retail market alongside its existing B2B trading operations.

It will provide working capital and support of marketing initiatives. The funds will also enable the company to fulfil new export contracts and customer orders as Stratton Tea expands into new global markets including China, Europe and the Middle East.

Razi, who is managing director of the firm, said: “This new Business Growth Loan from River Capital provides us with the working capital needed to drive our ambitious growth plans.

“With strong sales pipelines and new markets opening up, we are well-positioned to build on our successful first year. We appreciate River Capital’s continued partnership and confidence in our business.”

Stratton’s growth has been supported by the introduction of Saif Servaia as a shareholder and he has brought extensive experience from a number of roles including managing director for White Cliff Tea, Tata Consumer Products’ largest contract packer in India.

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In securing the funding, Razi acknowledged the support provided by the LCR Finance Hub who assisted Stratton Tea in preparing their financial projections and documentation, which helped secure the investment.

Due to the growth of the business, future plans include leveraging its strategic location near the Port of Liverpool to establish a manufacturing facility in the local freeport area, creating new jobs as it scales its consumer operations over time.

Sue Chambers, investment manager at River Capital, added. “Razi has built an outstanding business leveraging his 25 years of expertise in the tea industry and this funding will allow Stratton Tea to capitalise on its growth opportunities.”