5 to go majority stake taken over by two investment funds

5 to go, the largest coffee chain in Eastern Europe and the most accessed franchise in Romania, marks an important stage in its evolution, ten years after its launch, concluding a strategic partnership with the private equity fund Invenio Partners and the growth capital fund Accession Capital Partners (ACP).

5 to go, which this year exceeded 600 units opened, has ended its partnership with the two new investors five years after signing the agreement with Mozaik Investments in December 2019. The recently concluded transaction is a majority one, with the new investment funds taking over 60% of 5 to go shares, while the founders, Radu Savopol and Lucian Bădilă, will continue to hold a 25% stake in the business, at the helm of which they will be, as before. A 5% stake remains with businessman Andrei Alecu, and Mozaik Investments retains 10% of the shares. The new partnership supports both the international expansion of 5 to go, aiming to access several new countries with significant potential, and the consolidation of its position on the local market, where the 5 to go development map exceeds 150 cities and a network of 300 entrepreneurs. After this year's balance sheet showed a 10% exceedance of estimates, the forecasts for 2025 target a turnover of 72 million euros.

Radu Savopol, co-founder of 5 to go, declared yesterday, in a press conference: "This step represents an extraordinary growth opportunity for 5 to go, we are ready to test new markets and continue, stronger and more motivated, the success story we started in 2015. The collaboration with Invenio and ACP is more than a financial partnership. We share a common vision of growth and sustainability, which gives us the confidence that together we will reach new horizons. I am grateful to the partners who have been with us at every stage of the journey so far; Mozaik Investments remains a valuable support, whose contribution in recent years has prepared us for this new chapter. The value of the company is now far beyond what we imagined in 2019".

Vlad Buşilă, Managing Partner of Mozaik Investments, mentioned that the investment fund will remain in the shareholders, stating: "We believed in the potential of 5 to go from the very beginning, we have full confidence in their vision and we welcome this stage of development together with the new partners, to which we will contribute with all openness". In turn, Lucian Bădilă, co-founder of 5 to go, stated: "During the ten years of 5 to go, we have gone through many stages. We laid the foundations for franchising, we prepared the concept for national expansion, and the stage in which Mozaik took over part of 5 to go is the one that structured us and helped the post-pandemic "explosion" of locations, when we reached three foreign markets and consolidated the team. In order to fulfill our ambitious plans, we needed this boost that comes today from our new partners, to whom I thank for the trust they have placed in our brand and the entire team. We will remain here to lead the company as before, with the same determination to be better, more creative and innovative every day. In fact, we have identified these three attributes in the new partners and I can say that the alignment with our values has been an important differentiator. I am eager to reach the milestone of 1,000 locations in Romania in the coming years, and entering new foreign markets will make 5 to go one of the most relevant players in the industry in which we operate".

The Invenio Partners fund, led by Elvin Guri, has experience in cross-border development and supporting emerging companies in South-Eastern Europe. Its experience will support the integration of 5 to go in foreign markets, through personalized strategies and innovative solutions.

At the same time, ACP, a European fund with over two decades of experience and an extensive portfolio of over 65 supported companies and investments of over 800 million euros in Central and Eastern Europe, provides a basis for accelerating expansion and optimizing the franchise model.

Elvin Guri, Invenio Partners, says: "With the extraordinary support of Mozaik Investments, Radu Savopol and his team have managed to build a symbol of contemporary Romanian retail. The Invenio team is excited about the prospect of supporting them in achieving their vision, which is to make 5 to go a European leader in coffee shop chains".

Marko Mitrovic, Partner at Accession Capital Partners, add: "We are delighted to be part of this consortium with Radu Savopol and Invenio Partners and look forward to working alongside our partners and the 5 to go team to continue developing the company for the benefit of its numerous customers and franchisees".

Thus, 5 to go enters a phase of accelerated growth, the new partnership opening the way to new regional markets, such as South-Eastern Europe, and to the large Romanian communities in countries such as Spain, France, Germany, the UK and Ireland, which represent strategic opportunities for the development of franchises.

The transaction with the two funds is subject to the usual regulatory approvals of the Romanian authorities and will most likely be completed in the first quarter of 2025.