Bango secures £11m funding to support growth and market expansion for app store partners


11-11-2015

Bango plc (AIM: BGO), the mobile payments company, announces today a £11m funding round, subject to shareholder approval at a General Meeting.

 
  • Provides Bango with an increased balance sheet strength, giving confidence for existing and new app store partners
  • Will support market expansion and growth of app store relationships
  • Funding subject to passing of a resolution at forthcoming General Meeting on 30 November


The proceeds of the fundraise will be used to strengthen the Bango balance sheet, which is important for Bango’s global app store partners as they expand their use of the Bango Payment Platform into new markets. This expansion confirms Bango’s market position as the number one provider of carrier billing for global app stores.

The Bango Payment Platform provides a single standard for carrier billing, which reduces costs, increases revenues and speeds-up time to market. App stores integrate once into Bango to activate billing connections worldwide. The success of the Bango Payment Platform is demonstrated by the accelerating growth in End User Spend. Recent focus has been on activations in new markets and cementing Bango’s market position as the de facto standard for app store Direct Carrier Billing.

In the past few years, Bango has experienced strong, steady growth with over 140 direct activations between Mobile Network Operators and the world’s leading app stores, reflecting over 40% of app store carrier billing routes already going through the Bango Payment Platform (Progressive Equity Research, 2015),

End User Spend entering October 2015 grew 97% compared to a year earlier, with an annualized EUS rate of £60m.

The funds raised today will:

  • See Bango to profitability with a substantial cash balance remaining.
  • Ensure that Bango is well positioned to meet the anticipated high growth of the leading app stores. Global leaders plugging into Bango include Amazon, BlackBerry, Google, Samsung and Microsoft.
  • Maintain investment in Research and Development (R&D) and sales & marketing to ensure that Bango remains the most competitive provider of Direct Carrier Billing, extending methods of payment and enhancing value for partners through analytics and strategic initiatives to increase End User Spend in app stores.

Commenting on Bango’s £11m fundraise, CEO Ray Anderson said: "I am delighted that Bango has the support of top-tier investors to pursue further growth with our leading app store partners. Bango has worked hard over the years to remove barriers to growth – replacing upfront activation fees with a monthly recurring platform fee, and building a platform to smoothly process at least 15 times current spending levels. The mobile industry is now seeing the benefits of Direct Carrier Billing, and greater demand for this method of payment comes at a time when Bango is the market leader. The funding package announced today will see great returns as we deliver further End User Spend in markets around the world.”  

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App developers, stores and payment providers cross the threshold into the Bango ecosystem to converge, grow and thrive.

Bango