Capital City’s Mambo Sauce Secures New Cash
Mambo Sauce maker Capital City is celebrating its first round of investment this week after securing a First Lien Term Loan Facility from middle market investment firm Lafayette Square.
The new financing came from the firm’s Specialized Small Business Investment Company (“SSBIC”) license, which is granted by the U.S. Small Business Administration (SBA) and aims to provide financial support to historically underrepresented small businesses owners including women-, minority- and veteran-owned companies.
According to founder Arsha Jones, who launched the company 13 years ago alongside her late husband Charles Jones, funds will be put toward increasing production capacity, enhancing distribution capabilities and investing in brand-building initiatives. The cash will also be used to support new and existing retail commitments.
“This is about support from an investor who values what we’ve built and sees where we’re going,” said Jones. “With this being a no-equity loan and allowing us to keep 100% stake without compromising our identity or values we are gearing up to reach new heights. Securing this milestone funding from Lafayette Square will allow us to usher in a new era for Capital City where we continue to amplify D.C.’s cultural legacy.”
The Maryland-based brand currently sells two varieties of Mambo Sauce – Sweet Hot and Mild – which is made from a combination of ketchup, soy sauce and Cayenne peppers; the recipe is a staple in the Washington, D.C., area and originated as a condiment for chicken wings. Jones said that in addition to expanding production, the brand will also invest in product innovation with the goal of bringing additional varieties and packaging formats to market.
Capital City is available in over 3,000 stores nationwide including Target, Walmart, Amazon, and Costco. The brand also has a substantial foodservice arm where it is partnered with local chain &pizza, D.C. United at Audi Field and national accounts including KFC and Papa John’s. As Capital City continues to grow Mambo Sauce’s retail footprint, it will also put some of the funds toward expanding its team.
While the company noted that the relationship with Lafayette Square is not a formal strategic partnership, the company will tap into its financial expertise as it continues to scale the business and explore new opportunities for expansion and long-term growth.
“This investment has special meaning to me not only as our first investment from our new SSBIC, but also as a Washingtonian myself and avid consumer of Mambo Sauce,” said Damien Dwin, founder and CEO of Lafayette Square. “Arsha is phenomenal, both in business and in life, and Stacey Wade – an accomplished business builder – saw the potential early on when he introduced us last year. There are too few businesses like Arsha’s generating eight-figure revenue with steady margins. Let’s create more.”
