Manchester-based MPD Group lands £3.85m capital investment

MPD Group, the Manchester-based software firm, has secured £3.85m in development capital funding to develop its delivery management platform, Electio.

The seven-figure boost, raised as part of a deal led by venture capital firm NVM Private Equity, will also be used to unlock growth in MPD Group’s comparison service, My Parcel Delivery, and to bolster its executive team.

In the latest funding round, which follows another in early 2015, NVM invested £2.5m while investors Praetura Capital and Seneca Partners provided the remainder.

Now, MPD Group is seeking to double its workforce in the next 12 months, including the creation of 12 .net developer jobs in its Electio team.

Additionally, the Greater Manchester Combined Authority (GMCA) has increased its debt funding for MPD Group.

The firm’s founder and CEO, David Grimes, said: “I’m extremely honoured to be able to announce this latest round of funding, which brings us to a total of £6.5m raised since 2013.

“It will be crucial in the development of Electio in particular as we continue to make huge strides in shaking up the delivery industry.”

He added: “I’m also delighted that, in addition to securing NVM’s first investment, MPD has received support once again from Praetura Capital and Seneca Partners.”

To further drive its growth plans, MPD recently relocated its team from Trafford Park to a new office in the Merchant Exchange building on Manchester’s Whitworth Street West.

The managing partner of Praetura, Mike Fletcher, who is also a chairman of MPD Group, commented: “MPD Group has consistently shown itself to be leading the way in innovation in the delivery industry.

“Electio’s SaaS technology platform is bringing something new and exciting to ecommerce that many retailers have wanted for years.”

Mike continued: “Our focus will be on further developing our capability, building brand awareness and surrounding ourselves with the very best people to take the vision forward. We welcome our friends at NVM on this journey.”

NVM investment partner Andy Leach, who has joined the MPD board, said: “NVM is delighted to be supporting MPD through the next exciting stage of its development.

“We are pleased to have the opportunity to back such a fast growing business, with a potentially game-changing product and look forward to working closely with David and the talented team that he has built.”

Paul Jefferson from law firm Gateley Plc and Matt Noon from Hill Dickinson advised MPD during the deal, while Gunnercooke’s Tim Hamilton advised NVM.

Seneca Partners, meanwhile, was advised by Hill Dickinson’s David Mkhitarian. Professional services network Grant Thornton provided financial due diligence, Quinn Partnership management due diligence and Intuitus commercial and technology due diligence.

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