Dealflow | June 25, 2018

HCT Group raises £17.8 million to expand U.K. bus transit

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, June 25 – The London-based social enterprise has been operating a network of buses, primarily in and around London, since 1982. Its Red Bus route-map focuses on improving transport for underserved communities and people with disabilities. In 2015, when the had a network of 500 buses, it raised £10 million ($15.2 million then) in mixed-financing from Big Issue Invest, Triodos Bank, the City of London Corporation and others. It has grown 40% since then, providing 30 million trips with more than 730 buses, according to a statement.

  • Back for more… For HCT’s latest £17.8 million ($23.6 million) round was backed by existing investors Big Issue Invest, which led the round, Esmée Fairbairn and HSBC. A portion of the capital is new, while some will also be used to refinance old debt.
  • New investors… City Bridge Trust, MFS, Phone Co-op, Social and Sustainable Capital, TriplePoint and four high-net-worth individuals also backed the current funding round.

The funding, as with the previous round, was arranged by impact investment advisor ClearlySo.