Mobile operator Truphone raises £255m to fuel global expansion
Having recently agreed a strategic partnership with Apple, the tech business has now repaid debt it had accrued building its mobile connectivity platform
Truphone, a global mobile operator that seeks to “provide a local service wherever you are” has raised a whopping £255m via a successful rights issue.
Issuing shares to existing shareholders at a special price, investment firms involved includes Minden and Vollin Holdings, who prior to this latest funding round, owned an 83% stake in the business.
Offering mobile plans that don’t incur roaming charges when users travel abroad, Truphone’s “virtual SIM” service also allows IoT devices to connect to networks in different countries without a physical SIM card.
Using the funds to pay off the debt it had accrued building its own mobile connectivity platform, the London-based business will use the fresh injection of funds to “fuel global expansion” and further disrupt the trillion-dollar mobile industry.
With over 3,500 customers worldwide using the service, Truphone claims that “the majority of the world’s largest Tier 1 investment banks” are clients.
Founded in 2001, the tech business, which has more than 350 staff in 10 countries, has experienced rapid growth in recent years and aims to be profitable by 2018.
The investment comes shortly after it agreed a strategic partnership with Apple, which sees Truphone available in more than 50 countries on Apple e-SIM, which allows iPad users to get online and stay connected whether at home or travelling internationally.
Vollin Holdings is run by Russian steel magnate Alexander Abramov, while Minden is the investment vehicle of Chelsea owner and Russian oligarch Roman Abramovich.
Ralph Steffens, CEO of Truphone, said:
“Truphone continues to be the driving force reshaping the global mobile industry.
“Our disruptive Connectivity EcoSystem combines mobile connectivity, next generation SIM technology and a market-leading management platform.
“As a result of this unique proposition, we are able to offer highly differentiated Enterprise products and are the enabler of choice for disruptive IoT and eSIM solutions.
“I see this latest investment as a significant vote of confidence from our investors in our growth strategy, and our ambition to continue scaling the business globally.
“It is an important step in achieving our long-term goal to power billions of connected devices around the world.”