UK-based 2i told QA Financial that it raised fresh funding which will allow the software testing firm to bolster its expansion plans.
In fact, the investment opens the door for acquisition opportunities, company CEO Dave Kelly shared.
Although financial details were not disclosed, the company did share the allocation is “an eight-figure funding.”
“These funds allow us to accelerate growth as we aim to increase our revenue to more than £50m in the coming years,” Kelly said.
Last year, the company hit just over £20m in annual turnover, providing testing and quality assurance services to a range of clients, including in the financial services space such as Virgin Money and insurance giant Abrdn.
2i, which is based in the Scottish capital of Edinburgh, employs around 200 people across the UK. The firm enjoyed rapid organic growth in recent years.
Acquisitions coming
Kelly, who moved from managing director to CEO in 2022, said he is keen to explore acquisition opportunities with the injection of capital and experience that Rockpool will provide.
He is optimistic for the next phase of growth for 2i, as he said he will “identify acquisition opportunities to support our aim of becoming the premier quality engineering company in the UK.”
The funding was provided by London-based private equity firm Rockpool Investments, which is well-known within the UK investment space for supporting profitable high-growth businesses with ambitious growth plans.
Rockpool usually provides funding of between £5m to £15m to profitable UK-based private companies and has invested over £675m since inception.
The firm’s investment was led by Guy Nieuwenhuys and Will Beckett.
Nieuwenhuys said he has been “impressed by their proactive investment in talented people and automation products.”
He was keen to point out that “this business is highly innovative and takes a strategic partner approach to working with its clients. Increased digital change poses a huge risk to organisations as system failures can lead to significant financial and reputational issues for companies and their senior executives.”
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