Innovation Investment Capital Limited Partnership (IIC), the Cardiff Capital Region (CCR) backed fund has announced a multimillion-pound investment in Mazuma, the Bridgend-based online accountancy firm.
Mazuma is one of the leading providers of accountancy services for micro businesses in the UK, with a long-standing track record of innovation. Founded by Lucy Cohen and Sophie Hughes in 2006. Mazuma differentiates its business through a subscription model that allows subscribers to choose from a range of competitively priced accountancy packages and benefit from its proprietary technology through MazApp®.
Over the past year, Mazuma has been scaling the business and rolling out the MazApp® technology. With the addition of this new investment from Innovation Investment Capital, Mazuma will accelerate the development of its new accountancy technology solutions, expand the marketing and sales teams in Bridgend, and invest in the firm’s infrastructure and operations to support growth.
IIC’s decision to invest was based on several key factors, including:
- Quality and clarity of vision of the firm’s co-founders as a proven management team, with the ability to successfully execute their plans.
- Mazuma’s successful track-record and the opportunities to further grow in the accountancy market.
- The firm’s technology and ability to further disrupt the traditional micro-business accountancy space.
The Mazuma investment is IIC’s second investment, with the first in AMPLYFI, the Cardiff-based disruptive generative artificial intelligence business, which was announced in September. To date, the fund has received over 160 applications for funding from potential investee companies across Southeast Wales.
Launched in November 2022 and backed by UK Government funds with an initial £50 million from CCR, the fund is looking to invest long-term capital in sustainable growth opportunities across the ten unitary authorities that comprise the CCR. Its General Partner is Capricorn Fund Managers (CFM), which is responsible for managing the fund and the overall portfolio and risk management, with PwC supporting CFM in advisory matters, including investment research and sourcing.
Cllr Anthony Hunt, Chair of CCR’s Regional Cabinet and Leader of Torfaen County Borough Council, said: “What Mazuma has achieved and its vision for the future is phenomenal. It is a home-grown story, run by two trailblazing female founders. Our investment shows the depth of quality companies we have across the whole of our region, with this investment helping to take Mazuma to the next stage of its journey.”
“Ever since our first conversations with Lucy and Sophie in April 2023, what has always stood out has been their passion, focus and vision to innovate and disrupt the accountancy sector,” added Rob Asplin, PwC Partner. “Based on our discussions, we believe that Mazuma has an exciting future ahead of it.”
Lucy Cohen, Co-Founder and CEO Mazuma, commented: “We are thrilled with this investment and look forward to working with the Innovation Investment Capital team, who share our goals and vision. We can now accelerate the development of our proprietary technology and leverage our position to pursue long-term strategic goals. As a woman who has spent the last 17 years in such a male-dominated space, what we have achieved here, and what we will achieve in the future, will hopefully give people the confidence to back female-led businesses.”
Cllr Huw David, Leader of Bridgend County Borough Council commented on the home-grown nature of Mazuma: “We’re immensely proud of the ambition and reach of Bridgend-based companies like Mazuma whose achievements will resonate across the UK. CCR’s funding of innovative companies such as Mazuma helps to accelerate the growth in our Region and especially in Bridgend.”
“This investment will allow Mazuma to build on its success and accelerate growth through strategic hires and innovative technological development. It also highlights the fund’s appetite to support businesses from across a variety of different sectors and across different areas of the region,” concluded Lynda Stoelker, Capricorn Fund Managers’ COO and Chair of the IIC Investment Committee.
Legal advice was provided by Hugh James and financial & tax due diligence was provided by Hazlewoods. Bruce & Butler provided data protection and cyber security advice.
