The proceeds will be used to accelerate the growth of the business and continue investment in its transformative product portfolio, including further development of Arcus’ local government software platform and recently launched AI-powered voice solution, Arcus Answer. In the financial year ended 30 June 2018, Arcus delivered annual revenues of £13.0 million representing 34% year-on-year growth.
The funding is primarily from existing investors, principally led by funds advised and managed by YFM Equity Partners (“YFM”). This extension adds to the initial £3.0 million Series A funding that YFM made in May 2018, bringing the total Series A financing to £5.5 million.
Eamon Nolan, Partner at YFM Equity Partners comments: “Undoubtedly, outdated legacy systems are holding back the organisations in the public sector. Arcus Global is making great steps to help drive true digital transformation with leading local authorities, universities and the NHS across the UK and we are excited about the positive impact this has and what Arcus is set up to achieve over the next few years.”
Denis Kaminskiy, CEO and co-founder of Arcus Global added: “This new investment from existing shareholders is a huge sign of confidence in the execution of our strategy to deliver innovative cloud solutions to enable the digital transformation of the public sector. Their continued support is an endorsement of the rapid progress we’re making in disrupting the GovTech software market.”