OK, so this is not a groundbreaking idea—startups like ShareAGift in the UK and WePay and PayDivvy in the US have tried to solve the friend money-borrowing dilemma.
But, Payumi is the UK-based group payment site that has just secured $240,000 seed funding, taking it’s total funding to almost $400,000 and is set to launch fully next month. In fact, the startup was born around the corner from where I lived in East London, mate. If you don’t know about the Silicon Roundabout, check it out. You’ll see why this is a breeding ground for jolly good startups.
I Pay You, You Pay Me
Khurram Farooq, Moin Maniar and Stephen Rust are the London tech guys behind Payumi, the startup that promises to take the hassle out of paying your friends back for concerts, rent, holidays and the like. They have kitted out the site out with some interesting features:
- Facebook integration with PayPal payment method
- No fee is charged for payments under $30, and a small fee after
- You can choose to make your mate pay for the fee (I know I probably would)
So, just like that you can collect money from your friends online-simple, social, secure. And, according to Payumi, you’ll love the site because you’ll save time, kill stress and get paid. Brilliant.
What about the Investors?
Payumi has an initial $150,000 investment from co-founder Stephen Rust, with a list of investors including:
- Nick Hynes, CEO of Somo Mobile Marketing
- Warren Cowan, Alicia Levy, Andreas Pouros- Founders of Greenlight Marketing
- Emma Wilson and Mike Teasdale- Founders of Harvest Digital
- Paul Cooper-Partner at Clarity Capital Partners
- Patricia Burnett– Former Managing director at The White Company
The Angels And The Seed Enterprise Investment Scheme
The UK’s new Seed Enterprise Investment Scheme (SEIS) tax policy is an amazing incentive for investors in the UK bankrolling small businesses. Very interestingly, all of Payumi’s Angles utilized this startup-nurturing scheme.
If it takes off, it may mean some UK startups are going to get some summer love from investors this year. Just in time for the Olympics, perhaps?
Payumi’s East London Tech City Flat
And, what about London’s answer to Silicon Valley? Well, it’s called Silicon Roundabout in the budding tech area (and hipster paradise from what I remember) of East London. The Tech City Investment Organization (TCIO) was established in April 2011 and hopes to invest in the growth of the tech cluster to help make London Europe’s center of tech innovation.
Since the initiative was established, the Silicon Roundabout has thrived, even starting a $1.5m funding competition to find top digital companies in the area.
A site that defrays the awkward, “Oi, mate you owe me a few hundred quid” in a city that’s investing in their startups? It’s absolutely brilliant, dahling. Well done, Payumi and London!
