London mobile payments app Yoyo closes second tranche of $5m seed round
Telefónica Group, Imperial Innovations and Firestartr fund tech start-up to support expansion plans
London-based mobile payments and loyalty app Yoyo has raised $5m in seed finance with co-investment from existing backer Telefonica Group, Imperial Innovations, and new venture platform Firestartr; said to be one of Europe’s largest seed funding rounds this year.
Notable angel investors including Skyscanner co-founder Barry Smith, former Paypal Europe managing director Mathias Entenmann, and former Visa Europe vice president John Chaplin, also participated in the round.
Founded in 2013, Yoyo seeks to support better customer payment experiences with its app which claims to simplify and speed up in-store transactions by combining payment and loyalty through one card scan.
Having already integrated its app with Imperial College London, the tech start-up is now rolling-out its offering with the University of Greenwich and the University of Westminster, with the aim to build on its current payment processes of over 30,000 transactions every month.
It plans to use the investment to close additional partnerships with universities and high street retailers over the next 12 months, before expanding into the US and European markets.
Series A finance is also not far off the horizon for the fast-growth tech company as Yoyo co-founder and CEO, Alain Falys, explained:
“We’re delighted to close this substantial seed funding round from investors who add huge value. However, to fulfil our global ambitions we will raise a very significant Series A round of funding later this year.”
Feilim Mackle, Telefónica UK sales and services director, commented: “This multi-million pound investment is reflective of Yoyo’s potential, which is exactly what Telefónica is looking to support through Wayra, our tech accelerator.”