Nightcap, the hospitality group that owns the Brighton i360 observation tower, is seeking to raise £9m to help finance the acquisition of a competitive socialising business.

According to Sky News, the company is in discussions with investors over a seven-figure fundraising programme, with around half of the proposed investment expected to come from existing shareholders. A deal is reportedly expected to complete within weeks.

The acquisition target has not been identified, although sources said Nightcap intends to buy a sizeable operator in the fast-growing competitive socialising sector.

Nightcap owns a portfolio of hospitality brands including Dirty Martini, The Cocktail Club, Adventure Bar Group, The Piano Works and Barrio Familia.

The business was founded by chief executive Sarah Willingham-Toxvaerd, who appeared on two series of Dragons’ Den. She previously owned the Bombay Bicycle Club chain of Indian restaurants.