UK-based Internet provider Gradwell has secured a £1.15 million ($1.8 million) investment in the business from Southampton-based Altitude Partners.
The business VoIP telephony and Internet provider said it will use the funds to execute a significant “4×4” expansion plan – four times larger in four years. Gradwell has a turnover of £5m, a team of 60 and serves 12,000 UK small businesses.
The investment from Altitude Partners will enable Gradwell to scale its technology and expand its customer base.
Altitude partner and co-founder Simon White said that the investment in Gradwell is a smart one. “Gradwell is expanding at a rapid rate as more businesses discover the benefits of using VoIP for their telephony requirements. As an investor in regionally based growing businesses across the South, this investment fits well with our strategy”.
“We are pleased to be backing Gradwell’s dynamic team, who have a comprehensive knowledge of this burgeoning industry and a clear vision for the growth of their business,” added White.
Ahead of agreeing to the investment with Altitude Partners, Gradwell received corporate financial advice from Bristol-based Shaw & Co.
Gradwell's founder Dr. Peter Gradwell stated that his company is looking for steady growth.
“Our investors are not in a big hurry and our strategy is to achieve organic growth by acquiring new customers,” said Dr. Gradwell. “We deal with small businesses and there is a large number of businesses to get round. It's a mountain but it is not a large one.”
Businesses have been slow to follow the consumer lead of adopting VoIP over more traditional phone systems. With the new funding, Gradwell hopes to convey the message to businesses that switching over to VoIP can be highly beneficial.
“VoIP makes a company’s phone system cheaper and more useful for a business,” said Gradwell.
Gradwell’s revenues have grown over 30 percent year-on-year with a customer base of over 12,000 businesses.
Edited by Rich Steeves