Innovations invests £4.0m in Yoyo

26 June 2017

Touchstone Innovations plc

Innovations invests £4.0m in £12.0m Series B funding round in Yoyo

Touchstone Innovations plc (AIM: IVO, 'the Group', 'Innovations') has participated in a £12.0m Series B funding round in Yoyo Wallet Limited ("Yoyo" or "the Company"). Innovations has committed £4.0 million to the round, which was led by the digitalisation and start-up investment arm of the METRO GROUP Wholesale & Food Specialist Company, an internationally leading specialist in wholesale and food retail with ca. €37 billion in annual turnover. The round was also supported by Woodford Investment Management.

Founded in 2013 by a team of highly experienced entrepreneurs from the credit card and payments industry, Yoyo helps retailers drive business growth through mobile-first customer engagement. Operating through the Yoyo app, and via retailer-specific branded apps built and powered by Yoyo, the Company helps retailers to know, influence and simplify their customers' purchasing behaviours, whilst providing an engaging customer experience.

The Yoyo 'app' was launched in early 2014 across 32 food and drink outlets at Imperial College London and is now one of the fastest growing and largest multi-retailer mobile wallet in Europe, with more than 400,000 registered users; and an acceptance network in excess of 1,700 outlets.

Yoyo is now targeting high-street retail chains and independents. In November 2016, the Company announced it had been selected by Caffè Nero as the coffee chain's mobile payment and loyalty strategy partner, and earlier this year began the roll-out to the retailer's network of more than 600 stores. The Caffè Nero app went straight to number 1 in the UK iOS and Android Food and Drink app charts in April this year.

Jon Edington, Director of Technology Ventures at Touchstone Innovations, said:

"Following the success of their recent Caffè Nero collaboration, this latest funding round will help the team to build more partnerships with UK high-street retailers and further develop their AI marketing functionalities. It will also help the Company to realise its ambitious plans for international expansion across Europe."

As at 31 January 2017, the Group had a 51% interest in the issued share capital of Yoyo. Following this new investment Innovations will hold a 44.1% interest in the Company. The round is subject to FCA approval and certain normal closing conditions.

For further information contact:

About Touchstone Innovations - www.touchstoneinnovations.com

Touchstone Innovations plc (formerly Imperial Innovations Group plc or just "Innovations") creates, builds and invests in pioneering technology companies and licensing opportunities developed from outstanding scientific research from the 'Golden Triangle', the geographical region broadly bounded by London, Cambridge and Oxford.

This area has an unrivalled cluster of outstanding academic research and technology businesses, and is home to four of the world's top 10 universities, as well as leading research institutions, the cream of the UK's science and technology businesses and many of its leading investors.

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through protecting and licensing out intellectual property (through its Technology Transfer subsidiary, Imperial Innovations Limited), by leading the formation of new companies, by recruiting high calibre management teams and by providing investment and encouraging co-investment. Innovations remains an active investor over the life of its portfolio companies, with the majority of Innovations' investment going into businesses in which it is already a shareholder.

Since becoming a public company in 2006, Innovations has raised more than £440 million of equity from investors, which has enabled it to invest in some of the most exciting spin-outs to come out of UK academic research. In addition, post period end the Group has drawn down the outstanding £50.0 million from the European Investment Bank (EIB) taking the total loan to £80.0 million.

Between Innovations' admission to AIM (August 2006) and 31 January 2017, Innovations has invested a total of £335.7 million across its portfolio companies, which have collectively raised investment of £1.5 billion.

About Yoyo - www.yoyowallet.com

Yoyo is the fastest growing and largest multi-retailer mobile wallet in Europe. Founded in 2013 by Alain Falys, Michael Rolph and Dave Nicholson, it was recently chosen by Marketing Week as one of the Top 100 Disruptor Brands and by KPMG as one of 50 FinTechs to watch globally. Now in its 4th year, Yoyo powers retailer experiences across the UK on the high street, in universities and in corporate locations.