Sextech, agetech and dog food deliveries in this week’s MaddyMoney

UK fintech raises over £2M to support first time property buyers

London-based fintech, Tembo Money had raised £2.5M in a funding round which follows its successful launch in June. The startup is seeking to revolutionise consumer lending by allowing first-time buyers to get support from family in buying property, without requiring them to have a lump sum of cash. 

Co-Founder and CEO, Richard Dana said that the barriers on the path to home ownership for first-time buyers were often “insurmountable.” 

“We’re on a mission to change this mindset and help turn the tide on the generational wealth gap, by helping families work together to give first-time buyers a fast, affordable way to increase their deposit. This funding will allow us to do that,” he added.

The investment was led by Aviva and Fair by Design and was also backed by Big Society Capital and Joseph Rowntree. It will be used to drive expansion and optimisation of Tembo Money’s technology.

Startup to launch photo-sharing platform with help of NPIF loan

Mercia Debt Finance, part of the Northern Powerhouse Investment Fund, has loaned £250,000 to Digital Converters. The loan will help the company launch a new platform for families to share pictures and videos sercurly. 

The Ripon-based company helps its customers convert almost any type of outdated media, including videotapes and photo onto to digital and cloud-based platforms. So far this year it has converted over 100,000 video tapes and 500,000 photos, including for businesses such as fashion designer Stella McCartney.

Jonathan Craig, senior investment manager at Mercia admitted that the company had “spotted a gap in the market for a dedicated hosting service.”

Successful crowdfunding round for plant-based fast-food startup

Plant-based fast-food franchise, Ready Burger has raised almost £2M in from 800 investors via crowdfunding. The round, which was carried out on Crowdcube, will be used to drive growth and develop a new outlet in North London. 

As more people turn to plant-based substitutes, aware of the ongoing effects of meat consumption on the climate, Ready Burger is hoping to tap into consumer demand by making alternatives inexpensive and easy to access. The company are now seeking to match McDonalds prices.

UK agetech set for expansion after £800K funding

Mirthy had raised £800K in its latest funding round intended to grow its operation and team and develop its product. The platform provides an interactive community for over-60s, offering a variety of activities across fitness, cooking lessons and book clubs. 

The round, which was led by Ascension, Ada Ventures, Redrice Ventures and True, will also help the startup launch a membership subscription service by October.

Fo-founder and CEO, Alex Ramamurthy, told UKTN, “With more than double the amount of pre-seed funding we had initially planned to raise, it’s time to step on the gas. The next 6 months are all about growth. We’re hiring in marketing, product and sales roles.”

Karshare announces £3M to drive expansion throughout the UK

Community car sharing app, Karshare had raised £3M in a pre-Series A round. The startup allows people to rent cars within their community using keyless technology, meaning all cars registered on the platform can be instantly available. 

The 32-strong team has reported a 45% increase in revenue in the last six months alone. 

The investment, which was led by Nigel Wray, will be used to expand the platform in cities across the UK including Birmingham, Leeds and Edinburgh. 

Existing participants including Fullbrook Thorpe, Adjuvo Syndicate, and other angel investors also participated in the round.

UK social bank raises £17.7M ahead of launch

Social bank, Kroo Ltd, has raised £17.7M in a Series A round which will be used to organise before launch early next year.The startup aims to remove difficulties in financial interactions between family and friends by presenting customers with a prepaid debit card and new ways to monitor their finances, create groups and split payments. 

The investment, which was led by Karlani Capital founder Rudy Karsan, will be used to expand the team across various sectors, including engineering, marketing, product, compliance and customer service. 

“The reason I’m excited about Kroo is that it has a concrete opportunity to dramatically change the way people feel about their bank for good,” said Karsan.

AI-powered pricing firm secures funding in a bid for global market leadership

Bubo.AI, which uses AI in software pricing, has bagged a further £250K in funding from NPIF, to top off the £500K funding round led by NPIF last year.

The software has since won awards for its technology, having been listed as one of the most significant global pricing software providers worldwide by technology analysts, Gartner. It has also attracted multinational clients and global corporations

CEO, Alan Timothy, said he was “delighted” by the recognition. 

“This funding will allow us to maintain our position at the leading edge of AI and establish the software as the world leader in its field,” added Timothy.

UK dog food delivery startup bags £40M 

London-based online delivery service for fresh dog food has raised £40M in capital in its most recent funding round. The round was led by global private equity firm, L Catterton, alongside existing investors, including White Star Capital, Five Seasons Ventures and Passion.

The investment will be used to drive operational enhancements and expand growth across new products and into new markets.

Partner at L Catterton Europe, Jean-Philippe Barade said he was “thrilled” with the new partnership. 

“Butternut Box continues to leverage its innovative digital platform to raise the bar in the growing pet food market, and we look forward to collaborating with the entire Butternut team as they work to build on their considerable momentum,” he added.

Female-led tech startup raises £1.2M to tackle global counterfeit goods trade

Online brand protection business, SnapDragon Monitoring, has raised £1.2M in its latest funding round. The investment, led by ACF Investors, Mercia, and Scottish Enterprise, now brings the total raised to over £3M. 

The startup helps brand owners target and remove fakes and other online threats. The funding will be used to advance the AI technology, scale the company, build the team and extend operations. 

Founder, Rachel Jones said she was “delighted” with the additional funding.

“We are a female-led business, bucking the trend in terms of raising investment and being in the tech space and delivering outstanding results to protect brands around the world. We are hugely proud of everything the team has achieved to date,” she added.