Truphone looking to clear debt after £255m fundraise
British telecommunications startup Truphone is planning to wipe out its debt and expand its offer, after a £255m fundraise involving a group of investors - including Chelsea owner Roman Abramovich.
The company, which touts its zero-fee global roaming as a point of difference on its mobile plans, currently has £239m worth of debt.
Its chief executive, ex-BT man Ralph Steffens, told the Telegraph that it would use the new cash to wipe out that debt, and expand into new markets as it aimed to reach profitability next year.
Truphone was also looking to expand its ‘e-SIM’ services, after it made an agreement with Apple earlier this year allowing iPad users to connect to Truphone data services without the need for a physical SIM.
It’s understood Truphone was looking at the ‘Internet of Things’ as a potential market for its e-SIM services, as many IoT devices are small with space for a SIM card slot at a premium.
Abramovich’s investment firm Minden was involved in the fundraise - having first thrown its cash behind Truphone in 2013 - and was joined by Russian steel magnate Alexander Abramov’s Vollin Holdings.