Unity Coffee has raised £2 million in its second funding round, as the automated retail start-up looks to scale its app-led coffee model following pilot trials in London.

The funding round follows an earlier friends and family raise and was backed by a private investor linked to The Imbiba Group, alongside angel investor and W Communications CEO Warren Johnson.

The business, founded by former Costa Coffee and Coffee Nation entrepreneur Scott Martin, said early tests outperformed expectations, with more than 10,000 app downloads recorded within 24 hours ahead of rollout.

Unity is positioning itself within the growing automated retail segment, combining connected hardware with app-based ordering, payments and real-time loyalty. According to Global Industry Analysts, the global vending machines market is projected to reach $31.7 billion by 2030, while intelligent vending machines could hit $63.2 billion over the same period.

The company plans to deploy more than 500 machines over the next 12 months, targeting high-footfall locations including gyms, hotels, flexible workspaces and forecourts. The roll-out represents the first phase of a broader platform strategy spanning both hardware and software.

Unity’s self-serve coffee system has been developed in-house by its fintech engineering team and is aimed at consumers seeking a more affordable, digitally integrated coffee experience. The company claims its drinks are priced up to 20% below typical high street offerings.

Unity said its valuation has more than doubled over the past six months, supported by two London beta trials that exceeded internal adoption targets. During one 24-hour period, app downloads reached into the thousands as consumers trialled its range of coffee, matcha and hot chocolate via the platform.

The raise comes as established coffee chains face increasing competition from newer entrants targeting younger consumers with technology-driven formats. UK-based operators such as Blank Street and Black Sheep Coffee have expanded rapidly, while in China, Luckin Coffee has scaled its business through connected, unmanned retail models.

Martin said the company aims to challenge traditional coffee retail by combining lower pricing with a digital-first experience.

“Big Coffee has spent decades extracting maximum margin from a captive market, but we are here to flip the model,” he said. “We are committed to offering barista-quality drinks at up to 20% cheaper than the high street, powered by a digital platform built for the next decade and socially distributed instant rewards which serve customers and owners.”