The brand is named from the Welsh word for “coffee” and the labrador breed. Credit: worradirek/Shutterstock.

UK-based dog-friendly coffee shop concept Coffi Lab has secured a £1.7m ($2.15m) investment from the Development Bank of Wales.

The funding, which includes a convertible to equity element, will support the expansion of its store network across Wales and the southwest of England.

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Launched in 2021 by entrepreneur James Shapland, Coffi Lab currently operates nine stores, including five in Cardiff and two in Monmouthshire.

The brand will further its reach with a tenth outlet in Bristol in January 2025.

Coffi Lab employs 160 staff members.

Shapland, previously founded and led Coffee#1 before selling it to SA Brains in 2011.

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Taking inspiration from the Welsh word for “coffee” and the labrador breed, Coffi Lab opened its first store in Monmouth in July 2021.

The brand donates all gross revenues from the opening day of new outlets to the Guide Dogs UK charity.

Shapland said: “We have invested heavily in our infrastructure to aid smooth and efficient growth. Last year, we opened our Coff Lab Roastery and Bakery as well as a central kitchen which has enabled us to deliver seasonal menus and develop relationships with wonderful producers across Wales.”

“The investment we’ve had from the Development Bank of Wales means we’ll be able to leverage our investment, speeding up our rollout to bring our ‘labs’ to even more communities across Wales and beyond.”

The Development Bank of Wales, a subsidiary of the Welsh government, has previously invested in the sector with Quantum Coffee Roasters and Ground Bakery.