Livingbridge today announces its investment in Manchester-based Mobysoft, a market leader in predictive software for social housing providers. The investment comes from Livingbridge’s Enterprise 2 fund.
Mobysoft’s core product, RentSense, is a Software as a Service (SaaS) based predictive analytics service which delivers accurate and prioritised workload to social landlords. Using a range of data, RentSense’s algorithms present social housing officers accurate workload information, saving them time, improving efficiency in rent collection and enabling social landlords to mitigate welfare reform and reduce arrears by tens of millions of pounds a year. Mobysoft’s software is used daily by 91 social housing operators managing c.1 million properties, almost a fifth of the sector’s 5.2 million UK based properties.
Growing rent arrears is an issue for the UK’s 1,650 social housing providers with the largest 100 alone facing more than £700m of gross arrears in 2016. Rent reductions and welfare reform including Universal Credit, are adding to cost pressures in the sector and driving the need for greater efficiency.
Founded in 2003 by Derek Steele, Mobysoft has a team of 32, headquartered in Manchester. Livingbridge’s investment will enable Mobysoft to grow its UK social housing market share, increase investment in people and extend the use of predictive analytics into other areas of social housing.
Livingbridge has a strong track record in supporting software businesses and the investment in Mobysoft follows previous investments in Exclaimer, CSC, Eque2, Scriptswitch and Kirona.
Derek Steele, founder and CEO of Mobysoft, said: “We are delighted to be working with Livingbridge. Mobysoft has grown rapidly over the last few years, as more landlords chose to deploy RentSense. This investment will enable us to bring to market other complementary software solutions, based on predictive analytics, that can help social landlords deliver further significant efficiencies. Livingbridge has strong experience in helping businesses like Mobysoft and I look forward to working with them to take us to the next stage of growth.”
Nick Holder at Livingbridge, said: “Having known Derek and his team for a number of years now, we are delighted to partner with them. Mobysoft already has a strong market position and great growth potential, in a sector Livingbridge knows well. With the compelling combination of sector-leading software, an entrepreneurial management team and the capital to pursue its growth ambitions, this is an incredibly exciting opportunity.”
As part of the investment Ken Briddon has been appointed as chairman at Mobysoft. Ken has worked for IT and software businesses for over 40 years, including heading up PLCs. Ken has over 16 years’ experience as the chairman or NED of private equity backed software and services businesses, successfully advising and steering them through the transition to deliver further growth and profits.