Harrogate-based ready meals company Kirsty’s has received the first investment from The Northern Powerhouse Investment Fund II (NPIF II) in the Yorkshire and Humber region since the launch of the £660m fund in March this year.

Kirsty’s raised £2m, which will fund new ‘food to go’ ranges and other new products. The move is expected to add 15 new jobs to its 55-strong team by the year end.

Kirsty Henshaw created Kirsty’s in 2009 after discovering that her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance.

With so few healthy and tasty food options available to her, she began experimenting with different recipes and started selling small batches of ice cream to health food stores.

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Gaining in popularity and receiving interest from major retailers such as Tesco, she took her business to TV’s Dragons’ Den in 2010.

After successfully securing backing from Peter Jones and Duncan Bannatyne, Kirsty subsequently bought back their shares three years later after launching her meals into supermarkets across the country in 2012.

In 2020, Kirsty’s opened a 100 per cent allergen-free factory in Harrogate, bringing all its manufacturing operations in-house.

Kirsty’s ‘healthy’ ready meals are low in calories and free of allergens such as nuts, dairy, gluten and wheat. The company supplies all the major supermarkets and operates the only allergen-free factory of its size in the UK.

Kirsty said: “Nothing beats fresh, home cooked food. However, with modern life being busier than ever, we know that’s not always achievable, especially for those with allergies who have to prepare everything from scratch.

"We set out to create a range of healthy, convenience foods that everyone could enjoy whether they have an allergy or not. Our success is a real testament to our hard-working team. This funding will enable us to take the business to a new level and fulfil its true potential.”

Chris Borrett of Mercia Ventures, who provided the capital, said: “Kirsty is an incredible founder with a deep passion, an unstoppable drive and infectious personality. She has built a strong brand, a great team and a defensible platform for future growth.

“As our population becomes more aware of what they consume, and with busy lives and more dual income households, Kirsty’s is poised to truly lead the healthy convenience and allergen-free sectors.”

"With strong relationships with all the major UK retailers and a roadmap of exciting new products, we are excited about the growth journey ahead.”

Ken Cooper, Managing Director at British Business Bank said: “Like so many of the UK’s entrepreneurs Kirsty has a dedication to making her business a success. For 15 years consumers have sought out her product, and now with an injection of the right kind of finance she will be able to grow that market.

"In the current environment sectors such as manufacturing can find it increasingly difficult to remain competitive and attract funding. This investment shows that the Northern Powerhouse Investment Fund II is open for business and available to support ambitious businesses across the North.”

The £660m Northern Powerhouse Investment Fund II (NPIFII) 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 promises tol 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.