Less than two years after raising £2,520,439 through its previous Seedrs round, CommunterClub has launched a new equity crowdfunding campaign and surpassed its initial £1,850,000 funding target. The company is currently offering 10.92% equity with a £15,089,864 pre-round valuation.
As previously reported, the company was founded by Petko Plachkov and Imran Gulamhuseinwala. It helps commuters save time and money, offering an online retail solution for the sale of season tickets and payments through a subscription service. Basically, a Netflix and Trainline for commuting. CommuterClub makes money by financing annual tickets, earning interest and also from commissions from the retail of tickets. The platform’s goal is to become the go-to-hub for all commuter needs.
“Commuter Club is a unique tech platform that brings together data, retailing and credit to save commuters time, money and hassle. We help commuters find and purchase the right ticket for their commute through a simple online journey and access the big savings of annual tickets through a low-cost, convenient monthly payment plan. Like Netflix for commuting.”
CommuterClub also reported that customers pay 5.6% interest on the price of their annual ticket. Even with the interest, customers still make significant savings over other ticket options. The platform earns 2% commission on the retail of season tickets, and 5% commission on the retail of point-to-point tickets (which can be cross-sold to our existing user base).
“We plan to start offering additional commuting services including automatic delay refunds and premium subscriptions, and cross-selling insurance solutions and first- and last-mile services.”
Funds from the Seedrs round will be used for the following:
- Core platform (20%): onboard a new, lower-cost lender and deliver a self-service portal to improve operating costs and customer experience.
- Upgrade skills in product, marketing, and engineering (20%): Evolve its ticket finder tool and launch a smartcard to improve UX, reduce risk, and facilitate new revenue opportunities.
- Grow and acquire customers (60%): Fuel marketing growth and brand building to scale its loan book and build a self-sustaining back-book of customers.
The funding round is set to close later this summer.
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