Sourdough Sophia is nearing its latest crowdfunding target in support of 2026 expansion plans, including a “step change” in retail and new wholesale business.
The London-based craft bakery brand has currently raised £800k out of a £1m target, which will be spent on the fitout of its new shop in Neal’s Yard, Covent Garden, as well as two more sites in the capital and continued development of its Bermondsey production hub.
Having started in 2020 with a £500k kickstarter campaign, the company has held several rounds of crowdfunding over the years since, totalling over £4m from more than 600 backers. It has grown to operate five stores – its original location in Crouch End (soon to move nearby to a larger location), shops in Islington, Hamstead, Highgate, and its most recent one in Primrose Hill opened in May.
Its currently looking for the remaining £200k from similar individuals to its existing investors comprised of customers and local community members. “We have always grown this way and we expect the final stretch to close the same way, one person at a time,” commented co-founder Sophia Handschuh, who has amassed almost 270k followers on Instagram.
She says the company she founded with her husband Jesse Sutton-Jones has succeeded in crowdfunding by treating it as community building. “The people who invest in Sourdough Sophia are not passive investors, they are regulars who queue every Saturday, who know our bakers by name, and who genuinely care about what happens to the business,” said Handschuh.
“That emotional connection is what makes people write a cheque rather than just buy a loaf. We have never taken institutional money because we have never needed to. Our community has always been enough.”
Despite this approach, the brand’s latest site in Covent Garden marks a “genuine step change” as the high-footfall location will cater to tourists and workers as well as local residents. Work is well underway at the new 400 sq ft shop with an expected launch later this month, creating five new jobs including store manager, barista, and chef.
“We will also be introducing something very special to the menu that we do not offer at any of our other sites, something we are keeping under wraps for now but which we think will really excite our customers,” added Handschuh.
In addition to increasing its retail footprint, Sourdough Sophia is actively looking to build out a wholesale operation supplying London’s hospitality sector. The co-founder also alluded to “developing broader brand extensions” aimed at taking Sourdough Sophia beyond its physical bakery sites over time.
According to Handschuh, the company generated just shy of £600k in sales during Q1 2026 across four sites, recording a gross margin of 75% and weekly repeat customer rate of 82%, while average transaction value is up 8.2% year on year. In the weeks since it opened, the Primrose Hill shop is trading 30% above forecast, noted the co-founder.
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