“We were already on a rapid growth trajectory. However, the innovative nature of the solution InvoiceFair created for us, leveraging our own predictable MRR (Monthly Recurring Revenue), enabled us to accelerate that growth without having to resort to costly debt or equity funding. The commercial and tailored approach was a breath of fresh air compared to the traditional funding avenues we explored. They gave us control of our strategy and allowed us to optimize the opportunity we had.”

Dermot Keating, Chief Financial Officer
About Kooomo:

Headquartered in Dublin, Ireland with offices in Turin & Barcelona, Kooomo is an Irish one-stop, full-feature omnichannel digital commerce platform for mid to enterprise-level clients, powering over 1 billion transactions through their Platform since 2015.

They have built an impressive customer base of world-renowned brands like Morrissons, Mothercare, Blauer USA, Hewlett Packard, Umbro, Smeg, to name but a few.

 

 

 

Background:

Headquartered in Dublin, Ireland with offices in Turin & Barcelona, Kooomo is an Irish one stop, full feature omnichannel digital commerce platform for mid to enterprise level clients, powering over 1 billion transactions through their Platform since 2015.

They have built an impressive customer base of world-renowned brands like Morrissons, Mothercare, Blauer USA, Hewlett Packard, Umbro, Smeg, to name but a few.

The business operates on a SaaS (Software as a Service) based revenue model, earning monthly fees based on taking a percentage of their platform members online sales. A further source of income is the initial set up costs and any additional IT development work specific to the platform member’s unique circumstances.

Challenge:

COVID-19 has had a mostly negative impact on many industries but one area that has benefitted enormously is eCommerce, as it rapidly accelerated the move from bricks & mortar retail to online. The dramatic rise in revenues of existing eCommerce retailers combined with a rapid increase in new market entrants opened a world of opportunity to digital commerce platforms like Kooomo.

While the goal was to move quickly to take advantage of this new world order, Kooomo also realised that speed was of the essence for any prospective clients. They needed to be online and quickly. The market is dominated by well-established Global leaders, Kooomo realised that they had a number of significant advantages that would deliver on these growth aspirations:

Agility: Kooomo can typically go from a standing start to turnkey in as little as 2 weeks, versus 3-6 months for competitors.

Cost Effective: Some of the major platforms can charge up to and over €500,000. Kooomo’s fees average c. €20–50,000.

Features Rich: The Kooomo platform cover every aspect of the digital commerce journey, making it simple to manage the day-to-day running of any online store. The platform supports all currencies, VAT rates, and languages out of the box, making it easier for online brands to scale.

Funding was also needed for the roll-out of Kooomo Payments, in association with Adyen, enabling payments from multiple sources (e.g. Apple Pay, Google Pay, Klarna, Ideal) from a single place.

European Based Platform: European clients want a European solution and customer service, something that Kooomo could already provide out of their existing footprint.

The rapid scaling strategy required increasing funding to increase staff numbers, investment in new technology improvements, partnership opportunities, and new business initiatives.

Solution :

Kooomo approached InvoiceFair seeking an innovative growth financing solution that would allow the business to expand while doing so under efficient and cost effective funding terms. The answer was to leverage their own future contracted sales income to fund their exciting future expansion.

InvoiceFair proposed a unique funding model leveraging Kooomo’s future contracted recurring revenue in order to extend their runway and allow them access to immediate growth capital to support their ambitious growth strategy, while not having to give up equity or control in the business to raise funds.

Get in touch:

Interested in seeing what type of cashflow solutions we can provide to your business?

Email busdev@invoicefair.com or call the team on +35316632662

Download the Future Recurring Revenue Product sheet here

Or apply to see how much funding you could raise in as little as 24 hours  here

 

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