LOS ANGELES As its chief rival airs plans for aggressive growth, the 73-unit Pinkberry frozen yogurt chain reportedly has received a $5.8 million injection of venture capital funding.
According to a Wall Street Journal blog citing regulatory filings, the funding was the first part of a round totaling $15 million in March for the Los Angeles-based fro-yo chain. The investment would mark the latest major capital infusion for the brand, which received $27.5 million in financing from Maveron LLC in 2007.
While Pinkberry currently has stores only in California and New York, chief executive Ron Graves, a former general partner at Maveron, has said the chain will soon begin moving into other states and countries.
Meanwhile, fro-yo competitor Red Mango USA of Sherman Oaks, Calif., also is gearing up for expansion. Earlier this month, the 43-unit chain's new franchising vice president, James Franks, announced plans that call for the opening of 550 locations over the next five years.
Red Mango, which got a $12 million boost last year from private-equity firm CIC Partners, currently operates in California, New York, Washington, Illinois, Hawaii, New Jersey, Nevada and Utah. Later this year, Red Mango is scheduled to open its first unit in Texas.
Contact Lisa Jennings at [email protected].