Puttshack raises $150M in capital to support rapid US growth

Dive Brief:

Puttshack has raised $150 million in growth capital from funds managed by BlackRock and ongoing support from Promethean Investments, the company announced Tuesday.
The upscale mini golf concept will use the funding to support rapid expansion in the U.S.
The chain currently has two units in the U.S. and four in the U.K, and expects to open locations in Boston and Miami this fall, along with a unit in St. Louis this winter. In 2023, it’s targeting openings in eight U.S. cities.

Dive Insight:

This new capital will help Puttshack secure additional real estate opportunities as it looks to open in top markets. In 2021, the company raised $60 million in capital led by Promethean Investments to support its growth. Next year, the company plans to launch units in Dallas; Denver; Houston; Nashville, Tennessee; Philadelphia; Pittsburgh; and Scottsdale, Arizona, as well as a second unit in Atlanta.

Puttshack also expanded its management team in July to support rapid growth, with fresh talent in the roles of COO, EVP of software engineering and architecture and VP of learning and organizational development.

“We will continue investing in innovative technologies to enhance the overall guest experience with a seamless booking platform and novel mini golf game components only available at Puttshack,” Puttshack Group CFO Logan Powell said in the press release.

The Puttshack concept, which is popular among young adults, offers “Trackaball” technology integrated throughout the game that allows guests to use automated scoring, earn bonus points and play interactive games at each hole, among other features. Puttshack units also offer an “upscale nightclub vibe” spanning over 20,000 square feet.

“The demand in this space is compelling, and we are excited to support Puttshack in its rapid expansion,” William Im, director of BlackRock’s credit team, said in the press release. “There is a positive outlook on the horizon with substantial growth for the company.”

The sports-based eatertainment space is growing more crowded. Punch Bowl Social founder Robert Thompson will open the first unit of Camp Pickle, a pickleball-centered concept, in Huntsville, Alabama 2024. The concept is also targeting at least 13 additional markets for expansion, some of which overlap with Puttshack’s unit growth plans. Golf concept Topgolf’s growth may also pose a threat to Puttshack’s planned expansion, while rival mini golf eatertainment concepts such as Swingers continue to scale as well.