Fintech firm finds its Mojo thanks to funding

Richard Hayes is in no doubt when it comes to finding financial support for tech innovation. “If you have got a good business and traction, funding is not a challenge at all,” he declares.

Mojo, the award-winning fintech business he has founded to disrupt the mortgage sector, certainly has traction. It has grown by 405 per cent in the last 15 months.

And the Macclesfield-based business, which now employs 60 people, has raised just shy of £8m from a variety of sources in three investment rounds.

Hayes says: “Fintech is hot at the moment and there is more funding available for those that can prove they have a sustainable business and can grow.

“The reality is there are lots of good businesses in the North West. Most I speak to have not had any problem raising capital

“Lots of investors in are crying out for opportunities to invest in really great businesses.”

His business, which he founded two and a half years ago, operates in a market that is worth £1.3 trillion. Hayes says: “An investor can very quickly get an appreciation for the scale of opportunity that exists for Mojo.”

Its customers can compare thousands of deals from across the entire market, get a personalised mortgage recommendation and a mortgage in principle in 15 minutes – all from a phone or computer.

Mojo also handles the entire application – making all the necessary calls and arrangements for customers until their mortgage is in place.

Hayes says: “People can relate to the concept of trying to make that process much easier, much simpler, faster and cheaper. People get that.”

The business has just added a product transfer comparison service to its website. The technology, which Mojo says is an industry first, allows borrowers to carry out a comparison of the best rates their current lender is offering them against a full search of the market.

Hayes reveals he is looking to have captured a five per cent market share over the next three to four years.

Meanwhile, fast-growing Manchester fintech firm AccessPay has also attracted widespread attention and a wedge of investment to help drive if forward.

A £9m funding round at the start of the year was one of the largest ever for a Northern fintech company.

AccessPay was founded in 2012 and its platform enables finance and treasury teams to achieve significant cost and efficiency savings, as well as security improvements around global payments and cash management.

The platform, used by more than 500 clients, processes over 40 million transactions a year, connects corporate back-end systems with global banking and financial services providers.

The funding  is being used to expand its sales, marketing and engineering teams and further develop its software.

Venture capital investor Beringea led the investment. Marc Shirman, investment director and head of its new Northern office, says: “Manchester has an exceptional and rapidly growing fintech sector that we want to support.

“Great companies like AccessPay contribute immensely to the ambition of the North to be a global tech hub.”

KPMG’s Lizzie Smith works with high growth businesses across the region. She also manages the practice’s relationship with NorthInvest , helping to link early stage tech businesses to finance.

Founded in 2016 and aligned with the Northern Powerhouse, NorthInvest is a not-for-profit angel investment organisation that helps tech and digital start-ups raise money.

Smith says: They need to spend an awful lot of money up front in development. They need a lot of investment early on to get to the same stage as more traditional businesses. Up-front investment is needed to develop cutting edge technology.”

She believes there is a lack of awareness when it comes to angel investing in the North of England.

“Angel investors are not standing up and shouting about what they are doing. That is why organisations like NorthInvest are really important, helping early stage businesses get access to funding.”

Smith adds: “Finance is out there. Venture Capitalists have specific funds and are ready and waiting to invest in early stage businesses. They are all looking for the next big thing.

“A lot of businesses really struggle to present a compelling business case to these VCs. There is work to be done, particularly in the North, to make sure there is the support there to help these businesses become investment ready.

“Something we hear time and time again, is that entrepreneurs struggle to navigate and find out what support is there

“We are seeing VCs tending to invest in later stage businesses than they have done previously. They are looking to invest in scale up businesses that are generated revenue and they are looking for very novel ideas and concepts.”

David Harrison KPMG UK private sector technology consulting leader, adds: “I speak to a lot of start-ups. They find it relatively easy, with funding from friends and family, to get to £1m turnover quite quickly. The challenge is how to kick on from that.”

James Fitzgibbon, partner at Squire Patton Boggs agrees that there is investment cash out there. He says: “There is money for people to access, depending on whether they are willing to sell some equity.

“Investors are looking businesses that are making money now. It is getting through those early years when you are operating at a loss that is the challenge.

“It is also about attracting the right sort of investor, who understands your position in the market, what the vision is. You also need to have a strong management team.

“The eco-system is really strong both in Manchester and Leeds, there is lots going on, and they are particularly strong in fintech.

“Software as a service is popular with investors, things that plug into payment processes and data management.”