- Reformed, a UK-based coffee and matcha brand, has raised an oversubscribed $22 million Series A round led by IRIS Ventures.
- In just 20 months, the two-year-old brand reached $70 million in annualised revenue. About half of this comes from repeat customers, and 80% place a second order.
- Co-founder Neil Marrakchi told TFN the company is aiming for a $100 million run rate by the end of the year. He did not share margin figures and said that a sale to a strategic buyer such as Nestlé or Danone is possible.
Reformed, a UK-based functional coffee and matcha brand, has closed an oversubscribed $22M Series A led by IRIS Ventures, with JamJar Investments, V3 Ventures, and FoodLabs all following on from the previous round.
The raise comes as the London-founded company reports $70M in annualised revenue reached in just 20 months, built almost entirely on a direct-to-consumer subscription model and a team of 14. Co-founder Neil Marrakchi tells Tech Funding News the company is targeting a $100M run rate by the end of 2026, with a US launch planned for Q3.
A subscription model with SaaS-level retention
Reformed’s DTC metrics are what make the story interesting to investors. Around 50% of revenue comes from repeat customers, and approximately 80% of subscribers place a second order by their month-two renewal. These retention figures would be competitive in software, let alone consumer goods.
The company turned profitable within two years, though Marrakchi declined to share specific margin figures. Manufacturing is market-specific: the UK operation runs its own production unit, while the US launch will use local manufacturing partners, with both founders relocating to lead the expansion.
The product and the positioning
Founded in April 2024 by Marrakchi and Neil Saada, Reformed blends speciality-grade arabica coffee or ceremonial matcha with collagen or creatine, 21 vitamins and minerals, and functional mushrooms including lion’s mane and chaga. Subscriptions start from £39.99 a month, with a secondary retail presence at Selfridges.
Saada, whose mother is a nutritionist, spent 18 months working with food scientists in the Netherlands on the formulation before launch. Marrakchi joined the pair after a background in the fashion industry, following their introduction through a mutual friend in London.
“The idea is to add as much nutritional value as possible without disrupting the essence of the drink,” Marrakchi tells Tech Funding News.
That positioning is deliberate against a crowded field of mushroom-and-collagen coffee brands. Marrakchi points to Rise Coffee, a US rival he says generates $400 million to $500 million in revenue with a mushroom-first focus, and draws a clear line between that category and his own: “We do not think we’re a coffee alternative. We’re just a coffee upgrade… We don’t want to replace your coffee. We just want to upgrade your current coffee.”
The market and what’s next
The global functional drinks market was valued at $164.68 billion in 2025 and is projected to reach $315.89 billion by 2033, growing at a compound annual growth rate of 8.5%. That scale of opportunity is exactly why well-capitalised rivals like Rise Coffee already have a head start in the US market Reformed is about to enter.
New capital will fund senior hiring, new products in the coffee and matcha formats, and US market entry. Retail remains secondary to DTC for now.
When we asked about a possible acquisition by a company such as Nestlé or Danone, Marrakchi said he was open to it. He named brand-focused companies as his inspiration: “We love brands like Aesop, Alo… We really love the community they manage to build and the reputation those brands have.”
Flo Breiner, operating partner at FoodLabs, a Berlin-based early-stage food and health investor that has also backed European startups including Pacifico Biolabs, said most better-for-you products fail because people stop using them, and that Reformed’s insight was to build nutrition into a habit people already maintain.
Reformed’s retention numbers are genuinely strong, and its headcount is lean for the revenue it generates. But a founder chasing a billion-dollar US valuation while declining to share the margin behind a profitable claim is a tension worth watching as the company puts real money behind that ambition.
