In a significant move within the payments industry, UK-based startup yetipay has announced that it has raised £3.5 million to enhance its services. Known for offering efficient payment solutions to businesses in the hospitality, retail, and service sectors, yetipay aims to streamline transactions, promising ease and cost savings. By expanding geographically and strengthening its product portfolio, the company seeks to become a formidable player in the global market.
In 2023, yetipay secured approximately £6 million in funding, demonstrating its capacity to attract investors. Its strategy focuses on offering innovative, user-friendly solutions while planning to expand into the US, Australia, and New Zealand soon. This recent funding round aligns with yetipay’s commitment to growth and market expansion, enhancing its competitive edge in a sector defined by rapid technological advancements.
Why is re:cap partnership significant?
Establishing a £1.75 million debt facility agreement with Berlin-based fintech re:cap, yetipay becomes the first UK company to leverage re:cap’s €125 million credit facility. This fund, provided by HSBC Innovation Banking and Avellinia Capital, underscores yetipay’s focus on sustainable and non-dilutive funding practices. This approach reduces equity dilution while ensuring robust financial backing for strategic growth initiatives.
How do angel investors contribute uniquely?
In addition to the debt facility, yetipay raised £1.7 million in equity from a group of distinguished super angel investors. The involvement of seasoned investors like Paul Statham, Mark Blandford, Ben Whitaker, Lloyd Amsdon, Christian Riener, and Simon Squibb illustrates strong confidence in yetipay’s potential within the competitive payments landscape. These investors not only bring capital but also critical insights, benefiting yetipay’s strategic direction.
“We focused on raising the minimum amount required and selecting investors that bring valuable deep payments industry experience, combined with innovative non-dilutive funding from re:cap,” remarks Oliver Pugh, Founder of yetipay.
The company’s strategic funding decisions highlight its dedication to securing the expertise necessary for its ambitious plans. In this context, maintaining operational efficiency and delivering customer-centric innovations remain core to its operations.
The newly acquired funds will primarily support the expansion of yetipay’s payment platform and the launch of new offerings tailored to the needs of independent and enterprise clients, including well-known brands like Brewdog, Pho, and Grasso Soho.
“We’re thrilled to back yetipay as our first customer in the UK,” says Christian Luecke, Chief Commercial Officer at re:cap. Their partnership emphasizes yetipay’s market traction and product resonance with its target clientele.
Strategically securing such financing and partnerships enables yetipay to stand out in a competitive market characterized by companies with substantial operational expenditures. This nimble approach creates opportunities for further innovation and market penetration, efficiencies that are more crucial than ever as digital payment methods continue to evolve rapidly.
