Akkroo likely to undertake CIP-led funding round within a year – CEO

Provided by Mergermarket

Akkroo, a UK-based software-as-a-service that helps businesses capture sales leads at events, is likely to undertake a second funding round led by Conviction Investment Partners (CIP) within the next 12 months, amid plans to reach GBP 10m revenue within three years, co-founder and Chief Executive Officer Chris Wickson said.

Earlier this month, Akkroo completed a GBP 1.75m Series A round led by CIP, a UK-based syndicate of global investors, as reported. Although it is likely that the next round will be for more cash than this, Wickson said both the size and timing depend on the traction gained in the US market following the Series A finance, as well as Akkroo’s valuation.

Management will use the Series A funds to accelerate marketing activities and significantly expand its US operations, a company statement shows. Wickson named Chicago, Los Angeles, Boston and New York as the “hotbeds” of US business-to-business trade shows and exhibitions, and said that Akkroo could pursue future funding rounds aimed at US-based investors at an unspecified time.

The company is primarily focusing on growth in the European and North American business-to-business markets at this stage, he said, and aims to scale up its presence in the Asia Pacific region in the medium term, Wickson said without elaborating. Around 95% of Akkroo’s turnover stems from Europe and North America, he added.

Akkroo has raised cGBP 700,000 since its launch in 2013, the company statement shows.

Although management is focused on growing Akkroo, Wickson said it could review exit strategies before 2021. Although he declined to specify the company’s turnover, he said Akkroo is cash generative, has more than doubled recurring revenue annually over the last three years, and is on the way to becoming a GBP 10m-revenue business within three years. Akkroo employs 35 full-time staff in London, and expects this figure to rise to 50 across the UK and US within the next six months, he added.

Akkroo’s technology enables sales and marketing teams to streamline the way they capture, process and evaluate leads from exhibiting at events. Its client base includes global companies including IBM [NYSE:IBM], Sony [TYO:6758] and PayPal [NASDAQ:PYPL], the company statement shows.

by Lloyd Vassell

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