HCT Group, a UK-based community transport operator, secured a £17.8m funding.
Big Issue Invest led the round, which consists of a refinance of legacy debt and an injection of new capital. City Bridge Trust, Esmée Fairbairn, HSBC, MFS, Phone Co-op, Social and Sustainable Capital, TriplePoint and four high-net-worth individuals from the ClearlySo network also participated.
The company will use the funds to accelerate growth, providing the working capital to continue the rapid expansion and to provide the funds to acquire commercial bus operators and turn them into social enterprises.
Originally founded in 1982 and led by Dai Powell, CEO, HCT Group is a social enterprise that provides transport for marginalized people and communities, paid for by the revenues of commercial bus contracts.
The company delivers a range of transport services – from London red buses to social services transport, from school transport to whole bus networks, from community transport to education and training. It reinvests the profits from the commercial work into further transport services or projects in the communities we serve.
HCT Group currently operates with a fleet of 732 vehicles based in 13 depots, safely providing over 30 million passenger journeys per year.
ClearlySo, an impact investment bank, supported HCT Group in all facets of the fundraise, including advising on terms, development of the financial model, and approaching and negotiating with existing and new lenders, including two commercial investors new to impact investment.