Disruptive ‘digital first’ service for sale and installation of boilers secures investment to accelerate growth and create 30 new jobs over the next 12 months.
The investment includes a £1.65m investment from the Maven VCTs and a £500,000 investment from the North East Development Capital Fund, managed by Maven and supported by the European Regional Development Fund.
The funding will help accelerate Boiler Plan’s growth, allowing the business to increase its geographic coverage and invest in its sales, marketing and digital functions.
Boiler Plan provides an innovative online platform (boilerplanuk.com) for the purchase of a new boiler.
Its ‘digital first’ solution offers consumers a quick and convenient way to complete the quote process online, with the installation able to take place within 48 hours.
The platform supports the entire boiler sales process, handling everything from the choice of appliance, the initial home survey, finance payment options, installation by a qualified engineer, and the ongoing maintenance and aftercare service.
The UK domestic heating market is worth £3 billion annually and is growing at 2% per annum.
Alex Marsh, investment manager at Maven, said: “Boiler Plan has evidenced strong commercial traction in a short space of time and was one of the first of a small number of new entrants to disrupt this market with a digital solution.
“Most sectors have been disrupted to some extent now by digital and online solutions, and Boiler Plan’s innovative and customer focused platform has brought this choice to the heating market.
“The impressive growth the business has achieved since launching two years ago demonstrates there is a clear demand from consumers for this type of platform.
“Boiler Plan fits the mould of the dynamic and entrepreneurial businesses Maven seeks to support and we look forward to helping Ian and the senior management team add scale to the company.”
Boiler Plan brings a market disruptive and customer focused service to a mature sector, which until recently had seen little advancements in technology and service.
It is one of the first providers to offer a full end-to-end digital solution and the Boiler Plan platform currently services circa 45% of the UK market geographically.
The business will use the funding to roll out its operations into new territories, including the South West, Wales, London, the South East, and Scotland.
By 2020, Boiler Plan will cover 90% of the UK, with over 27 million households able to access its services.
Ian Henderson, managing director and founder of Boiler Plan, said: “Myself and my management team at Boiler Plan are delighted to have gained this investment from one of the most progressive fund managers in the UK.
“I would like to thank Alex Marsh and the rest of the team at Maven for their hard work and first class advice during this process.
“The realisation of this capital will allow us to continue on our growth path and further invest in our digital platforms and operational capability to offer our customers an unrivalled service when choosing a supplier for their new boiler.”
Principals and key advisors to the transaction were:
Legals – Paul Wigham, Watson Burton and James Nightingale, Ward Hadaway
Corporate Finance Advisors – John Healey, UNW
Financial Due Diligence – David Holt, Consilium
Commercial Due Diligence – Fleur Hicks, Onefourzero
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