UK-based broadband start-up Cuckoo closed a funding round worth US$ 6M on 25 April 2021 as it aims to disrupt the UK telecoms market.
Investors: The funding round was led by RTP Global, early backers of Yandex, Delivery Hero and Datadog. Other participants include JamJam Investments, which funded drinks maker Innocent, and a number of individual investors including marketing veterans from Monzo, an early Stripe employee and Verizon’s former EMEA director.
Purpose of the funding: The funds will be utilized to expand Cuckoo’s current team of 11 people and double it by the end of 2021. Cuckoo will further expand its services to onboard more customers.
About Cuckoo
Founded in 2019 by Alexander Fitzgerald, Cuckoo offers a single deal, transparent pricing and a one-month rolling contract. It provides broadband at one fixed speed and one price, which saves the average customer £130 on their broadband bill at double the average speed. It acquires bill and service customers more efficiently by leveraging the latest technology and with no legacy systems.
Broadband complaints in the UK are reportedly almost 40% higher than every other sector. This is because the broadband firms offer new customers discounted prices. But this price can rise by up to 89% after the contract period ends, often without them realising. Cuckoo aims to change this and bring a fresh new perspective to the broadband segment.
What the CEO has to say: “The broadband market is broken and consumers are being ripped off every day. The importance of fast, reliable and affordable broadband has come into sharper focus with millions of people working from home over the past year. We’re excited that this funding will enable us to help tens of thousands of people across the country make their broadband simple, for good. We’re growing quickly through word of mouth and referrals. People have grown sick of their broadband company during lockdown! We’ve even had one customer receive almost £400 in cash so far this year from referring their friends to Cuckoo.” — Alexander Fitzgerald, CEO of Cuckoo.
What the investors have to say: “Consumer broadband is one of the largest markets yet one of the most poorly served. Consumers are fatiguing of customer-hostile pricing practices, inflexible contracts and deliberately awful customer service, and just as we have seen in insurance, energy and banking, we will see a number of challenger providers come in to eat incumbents’ lunch with differentiated product packaging and a fresh respect for their customers.” — Gareth Jefferies, partner at RTP Global.
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