CommuterClub has announced it has raised £2.3million ahead of a new crowdfunding campaign on Seedrs which launches today.
The round is led by Wadhawan Global Capital (WGC). CommuterClub is also backed by angel investors Peter Jackson, CEO of Betfair, Gavin Casey, former CEO of the London Stock Exchange, Chris Adelsbach, Head of Barclays Techstars, and former World No 1 tennis player Andy Murray.
CommuterClub is the leading independent UK retailer and financing provider of commuter season tickets, saving cash-strapped consumers time and money by offering tickets as a digital subscription service.
The business has signed a new partnership with global money app Revolut, which will allow CommuterClub to offer rail ticket financing to its customers.
The business was founded by Petko Plachkov, a former McKinsey consultant and Imran Gulamhuseinwala, who recently received an OBE for contribution to UK fintech and is Head of fintech at EY.
Petko Plachkov, CommuterClub co-founder and managing director, said:
“Commuting in London and big cities is exorbitantly expensive and this new fundraising campaign will allow us to grow and offer our simple and transparent instalment plan to consumers in the UK and overseas.
“It made perfect sense to partner with another innovative fintech in this space, Revolut; together we will be able to reach many more consumers, saving them time and money.
“This industry is ripe for further disruption. It seems unbelievable that 95 per cent of people still buy their season ticket offline. Consumers deserve more.”
In August it was announced that rail fares will rise by 3.6 per cent from January 2018. CommuterClub helps commuters ease the burden of inflating commuting costs and access savings by allowing them to spread the large upfront price of a season ticket into fixed monthly payments. It works out approximately 30 per cent cheaper than buying weekly or monthly Travelcards.
Finance for the product is provided by RateSetter, one of the UK’s leading peer to peer lending businesses. CommuterClub works in partnership with companies including Abellio and First Group to provide annual Travelcards to commuters.
CommuterClub, described as one of ‘the hottest fintechs in Europe’ has seen its revenue grow almost 5x yoy since 2014. The business has processed over £30million loans, helping its 10,000 customers to save more than £3m on their commute. CommuterClub was recently included in the Sunday Times Tech Track 100 as one of Britain’s fastest growing companies.
A seed round in February 2016 raised £1.2m from several London angel investors.
Wadhawan Global Capital (WGC), Chairman Kapil Wadhawan, said: “We are excited about our investment in CommuterClub, a UK-based fintech company which uses technology to enable convenience in the era of fast-age living.
“A disruptor, CommuterClub resonates with our group philosophy of empowerment through better management of finances. By saving commuters time and money, the company has made itself a household name in the UK. We hope to work alongside the team to help scale the business in UK and other parts of the world.
“The investment is in line with our objective of supporting new-age entrepreneurs by enabling them to seize the right opportunities. With three decades of experience in a market as diverse and dynamic as India, we believe that we have the capabilities to leverage such promising ventures with strategic and efficient guidance. At the same time, these associations help the WGC group remain relevant and competitive in the rapidly evolving fintech space.”