ETG acquires Lightning Reach to expand public-sector software portfolio
The deal price was not disclosed; Lightning Reach says its platform has helped 300,000 people access more than £25 million in support.
By Marcus Adeyemi · Startups Editor
· 3 min read
European Technology Group has acquired Lightning Reach, a UK fintech-for-good platform that helps people find and apply for financial support, for an undisclosed sum. The deal gives ETG another public-sector software asset and gives Lightning Reach a long-term owner as it tries to expand from 300,000 users reached to a target of more than 1 million by 2028.
Lightning Reach was founded during the Covid-19 pandemic to address a fragmented support system in which grants and other assistance are spread across local authorities, utilities, charities, housing associations, banks and other organisations. The company says more than 20 million people in the UK are financially vulnerable, while more than £24 billion in available support is not claimed each year because people do not know what is available, applications remain manual and schemes sit across different providers.
The company’s platform is intended to give individuals a single route to identify and access support, while giving organisations software to process demand and reporting requirements. Lightning Reach says it now works with more than 100 UK organisations, including large utility providers, councils, charities, housing associations and banks.
Since launching its platform in December 2021, Lightning Reach says more than 300,000 people have accessed over £25 million in financial assistance through its service. The company also said it quadrupled annual recurring revenue over the past year and remained cash positive, though it did not disclose current ARR, purchase price, valuation, revenue multiple or headcount.
The acquisition follows earlier backing from nearly 30 investors, including the Joseph Rowntree Foundation, Big Issue Invest and Techstars. Lightning Reach was also recently named Fintech for Good of the Year at the Fintech Awards London.
ETG buys and scales software companies that serve the public sector and regulated industries in Europe. The group says its portfolio serves more than 400 public-sector clients and a combined population of more than 14 million citizens across six countries. Lightning Reach is ETG’s third investment.
For ETG, the transaction extends a thesis around software used in public-service delivery, where procurement cycles can be slow but customers can be sticky once systems are embedded. For Lightning Reach, the buyer brings a public-sector customer base and operating resources in sales, international expansion and product development. The companies said the ownership change is expected to support broader market access, public-sector procurement and further product investment.
Lightning Reach will continue to operate independently under ETG, with the existing team remaining in place and no anticipated changes to the platform or services for partners and clients. As part of the transition, COO Rhiannon Sheridan has become CEO. Founder and former CEO Ren Yi Hooi will remain involved as a board director.
Hooi said the company had reached a point where its impact could continue beyond her role as founder, and described Sheridan as the right person to lead the next stage. Sheridan said ETG’s backing would help the company scale sustainably, deepen partnerships and keep investing in the platform as it works toward its 2028 goal. ETG CEO and co-founder Lars Becker said the group sees room to expand Lightning Reach across the UK and beyond.
This story draws on original reporting from Tech.eu.
