Growth Capital Financing for a Scaling Consumer Goods Company
A Swiss-based consumer goods company with strong domestic performance and a proven business model reached a critical growth phase.
Demand from neighbouring European markets was increasing, but the company lacked sufficient capital to finance international expansion, brand development, supply-chain scale-up, and working capital needs simultaneously.
Although the business was profitable, traditional bank financing alone was not suitable. Additional debt would have strained cash flow and limited strategic flexibility.
The shareholders, therefore, explored growth capital solutions to support expansion while preserving long-term value.
Key Challenges
- Financing international expansion without over-leveraging the balance sheet
- Funding marketing, distribution, and inventory buildup across new markets
- Maintaining operational control and strategic direction
- Balancing dilution with long-term shareholder value
- Attracting investors with sector expertise, not just capital
PrestaFlex Growth Capital Approach
PrestaFlex began with a growth capital pre-check, analysing:
- revenue scalability and margin development
- cashflow generation and working capital needs
- capital requirements for market entry and growth phases
- shareholder objectives regarding dilution and governance
Based on this analysis, PrestaFlex structured a minority growth capital transaction, combining capital injection with strategic partnership.
Key elements of the structure included:
- Minority equity investment from a growth-focused investor
- Capital earmarked for international expansion, brand positioning, and operational scaling
- Governance rights protecting founder control and long-term strategy
- Clear growth milestones and value-creation roadmap
- Optional follow-on investment mechanism linked to performance
PrestaFlex identified and approached selected European growth capital investors and family offices with experience in consumer goods, brand scaling, and international distribution.
Outcome
- CHF 9.5 million in growth capital raised
- Successful market entry into three European countries within 18 months
- Strengthened balance sheet and improved financial resilience
- Expansion financed without excessive debt
- Founders retained operational control and strategic leadership
The combination of growth capital financing and strategic investor support enabled the company to scale efficiently while preserving its entrepreneurial DNA.
Why Growth Capital Was the Right Solution
This case illustrates how growth capital differs from traditional financing:
- It strengthens equity rather than increasing leverage
- It supports long-term expansion rather than short-term liquidity
- It aligns investors with strategic growth objectives
- It enables scale-up without sacrificing control
For companies at a similar stage, growth capital offers a powerful alternative to debt when the goal is sustainable expansion and long-term value creation.
Key Takeaway for Business Owners
Growth capital is not just about raising funds — it is about structuring the right capital for the right phase of growth.
With the right investor and structure, companies can accelerate expansion, strengthen governance, and unlock long-term potential.
