On 31 January 2018, Angelfish Investments plc (‘’Angelfish’’) announced that the Company had entered into a secured Convertible Loan Note agreement with YBOO Limited (“YBOO”).
YBOO owns and operates a UK mobile app which enables the customer to know which mobile network and deal is best for them. According to Which? in 2015, UK consumers overpaid by an average of £159. More recent research conducted by The Citizens Advice Bureau, shows 36% of consumers overpay by between £22 and £38 per month, equivalent to between £264 and £456 per year.
The free to use app is supported by complex ‘back end’ systems which translate consumer behaviour and habits into a “meta-model”. This can then be compared to the spectrum of mobile service offers, which are updated to provide real time costs and charges. The customer then receives recommendations on the most suitable deal matched to their own personal usage and behaviour. YBOO will generate revenues from connection bonuses from switching deals and/or network, and the mobile networks from providing access to data and consultancy.
The app is currently live on the Android platform and is in the latter stages of beta testing for iOS. This investment will allow YBOO to trigger its sales and marketing plan to apply the benefits of its app to over 92M subscriptions in the UK.
Early users of the YBOO app have achieved real savings with a recent example seeing a user’s bill reduced by more than £13 per month and an additional 4GB of data compared to their previous contract.
YBOO will use the funds to further develop the user experience when using the app with a goal of ultimately providing a click through approach to switching tariffs. Funds will also be used to complete the testing and initial development of the iOS app planned to launch in the early Spring, in addition to commencing the sale and marketing activity of the Company.
Following the final instalment on 1 July, the loan was converted into a 15% holding in YBOO, in accordance with the terms of the agreement.
On 18 July 2018, Angelfish announced it had agreed to increase its holding by a further 5%, to a total of 20%, for consideration of GBP100,000.
On 5 November 2018, Angelfish further announced that it had agreed to increase its holding by a further 15%, to a total of 35%, for additional consideration of £400,000. Furthermore Angelfish has agreed to provide a working capital loan of up to £1.5million at an interest rate of 10% p.a. secured over the assets of YBOO. The loan may be drawn down in minimum instalments of £100,000 and is repayable in full, including accrued interest, no later than 24 months from the commencement of the agreement.
This funding package will allow YBOO to continue its UK and international rollout campaign and continue with an accelerated development of YBOO products.