Irish business telecoms company IP Telecom has secured a €6 million investment from a development and growth capital fund that it says will help fuel acquisitions and almost double the company’s revenues over the next year.
Development Capital, founded by Andrew Bourg and Sinead Heaney and backed by Irish and international investors, said on Wednesday that the agreement to take a minority stake in the company brings its total investment in Irish SMEs to €100 million since 2013.
As part of the investment, Anthony O’Driscoll, investment director at Development Capital, will join the board of IP Telecom.
Headquartered in Park West in Dublin and employing 40 people, IP Telecom provides specialist cloud-based VoIP (voice over internet protocol) phone plans to business clients.
The business has grown steadily in recent years, generating profits in excess of €856,000 in 2021, according to its most recently available set of accounts. IP Telecom says it has achieved average annual revenue growth of 25 per cent and is forecasting turnover will reach €6 million this year.
The company said in a statement on Wednesday that it aims to expand revenues to €11 million in its 2024 financial year through a combination of organic growth and acquisitions.
Shena Brian, IP Telecom chief executive, said the business had seen consistent growth since 2020.
“Now, together with Development Capital, who share our vision for success, we are looking forward to reaching new heights ... With this investment, our innovative technology solutions, dynamic customers, and Anthony O’Driscoll’s counsel on our board, we are set to fulfil this goal and much more as part of the thriving, innovative tech ecosystem in Ireland.”
The investment, Development Capital’s 13th in all and its fourth from the second of its €75 million funds, brings to €100 million the total it has pumped into Irish companies since arriving on the scene in 2013.
Among other transactions, the fund partnered specialist food investor BiaVest in 2021 to acquire Nomadic Dairy from Donegal Investment Group for an upfront consideration of €23 million. Development Capital also has stakes in Spotlight Oral Care and Drogheda-based building materials provider Wogan Build Centre.
Mr Bourg said the fund is keen to partner other established Irish SMEs that have “significant growth opportunities” and are seeking investment between €2 million and €12 million”.
