CommunterClub has returned to the UK-based equity crowdfunding platform Seedrs just after it raised £2.3 million in venture capital funding. The company launched its first crowdfunding round in 2015, which during that time had only £25 million pre-money valuation. Its pre-valuation is now up to £11,546,623 and it is offering 16.61% in equity during this funding round.
The company, which was founded by Petko Plachkov and Imran Gulamhuseinwala, notably helps commuters save time and money, offering an online retail solution for the sale of season tickets and payments through a subscription service. Basically, a Netflix and Trainline for commuting. CommuterClub makes money by financing annual tickets, earning interest and also from commissions from the retail of tickets.
“CommuterClub is initially targeting the estimated £5bn UK season ticket market and eventually expects to expand internationally into an estimated +£20bn commuting market in cities such as NY, Paris and Hong Kong. Since last listing on Seedrs, the business has made tremendous progress. The business expanded nationally, broadened its corporate solution and is in the process of launching a retailing proposition. Revenue has grown almost 3x in the last year and the business has processed close to £30mn in loans.”
According to City A.M., CommuterClub secured the £2.3 million venture capital funding from Indian financial services firm Wadhawan Global Capital (WGC), an investor in Zopa and Goldman Sachs-backed fintech startup Neyber, with previous investors also participating. Plachkov reportedly stated to the media outlet:
“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. 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.”
Funds from the latest Seedrs round will be used to continue CommuterClub’s expansion. It is set to close later this fall.
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