Fintech lender Uncapped acquires app finance platform Sugar
Fintech lender Uncapped has acquired Sugar, a specialist financing provider for makers of digital games and apps.
The acquisition gives Uncapped a foothold in the games and apps market, giving it access to more companies that could benefit from funding opportunities on the Uncapped platform. The fintech, which was founded in 2019, is a London-based funding provider that gives European startups advances of between £10,000 and £10 million. Instead of taking an equity stake in the businesses it backs, Uncapped charges a fixed fee that is reimbursed from future revenue, meaning entrepreneurs can maintain control of their growing business.
Following the acquisition, Sugar will change its name to “Sugar Powered by Uncapped”. The platform gives game developers and app studios access to fast, automated debt financing – which Uncapped says is “a perfect fit” with its own lending model.
Uncapped attracted by “complementary business model”
Sugar CEO Matt Frenchman says: “Partnering with the Uncapped team makes tremendous strategic sense. We’ve made real progress in the games and apps market to date and we’re very excited to be working with the Uncapped team to fund further large companies.Their approach to technology, financial expertise and wide geographic reach are deeply impressive.
Piotr Pisarz, CEO of Uncapped, adds: “Uncapped exists to help founders win, so we are extremely excited to help more companies access flexible and fast funding through this acquisition. At Sugar, we’ve found a like-minded team with a complementary business model and an equal passion for helping businesses grow.
It’s a next step in the journey of Sugar, which only closed its £1.5m funding round – led by Passion Capital and Velo Partners – in September 2020. The company, which was founded the previous year, is led by Matt Frenchman, who is a former head of European equity sales at Credit Suisse and was also a director of energy technology startup Migrate, which was later acquired by Octopus Energy.