Innovations leads £5.9m funding round in Yoyo

15 April 2015

Imperial Innovations Group plc

Imperial Innovations leads £5.9m funding round in Yoyo Wallet

Imperial Innovations Group plc (AIM: IVO, "Innovations", "the Group") has led a £5.9m Series A funding round in mobile payments and loyalty company, Yoyo Wallet ("Yoyo" or the "Company"). Innovations has committed £5.0m in this round with the balance made up by a number of angel investors with sector background.

Yoyo Wallet was founded in 2013 at Imperial Innovations by a team of highly experienced entrepreneurs including Alain Falys (Founder OB10/Tungsten, ex-Visa), Michael Rolph (ex-PayPal, Barclaycard and First Data) and Dave Nicholson (Founder Zopa, ex-Egg) with the aim of developing a marketing platform for retailers, powered by mobile payments. The company has developed a retailer agnostic mobile wallet branded "Yoyo" that simplifies and speeds up in-store transactions by combining payment and loyalty via one easy scan. It also provides a marketing platform for retailers that enables digital customer engagement in-store. Retailers gain access to a set of tools, powered by data that enables them to better target their customers directly via the app, with personalised loyalty rewards, offers and incentives.

The app was launched in early 2014 across 32 food and drink outlets at Imperial College London where it represents circa 30% share of payment transactions. Since then, the Company has signed 12 Universities as customers and implemented the solution at five High Street retailers and three corporate canteens, in partnership with some of the world's largest corporate catering companies.

Innovations first invested in Yoyo in August 2013, leading the Company's seed funding round, and as of 31 January 2014, had a 36.2% interest in the share capital of Yoyo with such interest having a fair value of £2.9m. Following this new investment, Innovations will hold a 51.4% stake in the Company. The Group does not control Yoyo (control as defined by IAS 27) and therefore does not consolidate it.

Investors in the round also include Phillip Riese (former President of American Express Consumer Card Services who also joins the Yoyo Board) Jonathan Weiner (former Head of Global Business Development, Google Wallet and Payments) and Taavet Hinrikus (co-founder of Transferwise and Firestartr.co the technology investment platform).

Jon Edington, Director of Technology Ventures, Imperial Innovations, said:

"We are delighted to be leading this funding round. The team has made strong commercial progress and in just over a year since launch, by consistently growing its transaction numbers and signing up new universities, high street retailers and corporate canteens. The usage metrics are very promising.

"This success is down to the quick execution of the company's experienced and talented management team. The proceeds from the funding round will be used to capitalise on this early success through further product development and by growing the sales and marketing infrastructure."

For further information contact:

Notes to editors

About Imperial Innovations - www.imperialinnovations.co.uk 

Imperial Innovations Group plc creates, builds and invests in pioneering technologies developed from the academic research within the 'Golden Triangle' broadly bounded by London, Cambridge and Oxford, which is home to the UK's four leading research-intensive universities.

This area is home to many new technology companies through its proximity to the academic communities of Imperial College London, the University of Cambridge, the University of Oxford and University College London, as well as other leading research institutions.

Imperial College London, the University of Cambridge, the University of Oxford and University College London collectively have research income of £1.4 billion per annum and are ranked as four of the top ten Universities in the world (source: QS World University Rankings 2014/15).

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through the licensing of intellectual property, by leading the formation of new companies, providing facilities in the early stages, providing investment and encouraging co-investment to accelerate development, providing operational expertise and recruiting high-calibre management teams. It also runs an incubator in London that is the initial home for many of its technology spin-outs.

Since admission of its shares to trading on AIM in 2006, Innovations has raised more than £346.0 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, the Group has a £30.0 million loan facility from the European Investment Bank (EIB) for investment in biotech and therapeutics businesses.

During the period from admission on AIM up until 31 January 2015, Innovations has invested a total of £198.3 million across its portfolio companies, which have raised collectively investment of £926.8 million rising to £1.0 billion including post period end investments and commitments.