Postworks Foresight investment

Today, October 2018, Postworks is announcing a significant investment of an undisclosed amount from Foresight Group, who are adding to their £2.7 billion investment portfolio.

Postworks was launched in 2016 with the goal of disrupting the British postal industry by giving businesses a simpler way to send business post online.

Postworks is an online franking company providing small and medium-sized businesses with a software-based alternative to franked business post.

Using the Postworks software platform, businesses can drag and drop their post for electronic sorting, printing and folding at Postworks’ printing centre before it is handed over to Royal Mail for delivery.

For SMEs used to franking machines, long contracts and confusing mailing costs, Postworks offers a more flexible print and post service that helps take the admin out of sending letters.

Postworks’ innovation has led to a startling level of organic growth since launch, just one of the reasons why the investment opportunity was attractive to Rodney Appiah, Director at Foresight Group, who commented:

“We are very pleased to have made this investment into Postworks. We look forward to working with the management team to scale this innovative and disruptive technology business. Postworks is truly a great example of the vibrant startup community within the U.K.”

Rodney Appiah, Director at Foresight Group

James Booker, Postworks CEO, added:

“We are removing the barriers that the SME market face when sending post, like long franking contracts and complicated pricing structures. More importantly, we are giving the postal industry a much-needed push into the digital age and we are looking forward to working with Foresight and the wider team on this.”

Postworks’ investment is one of the first to be funded by Foresight’s new equity fund for the Midlands Engine Investment Fund, MEIF.

The British Business Bank launched £100 million of equity funding for the region as part of the wider £250 million Midlands Engine programme, dedicated to growing businesses across the East and South-East Midlands.

Foresight’s investment from MEIF will support the continued growth of Postworks. Over the next five years, Postworks says it will open eight print centres to reduce the transport of physical mail items.

Newly appointed Chairman Simon Moate has also joined the business.

Simon has over 15 years’ experience working with SMEs operating in business support services and was formerly CEO of Office2Office Plc, a diversified business services group.

“It’s clear that business systems and processes are part of Postworks’ life-blood and the firm is constantly innovating and developing its own systems as a result. Postworks is an incredibly switched on business, having already grown significantly, and with more to come. It is definitely one to watch. Clearly the fund managers think so too.”

Malcolm Johnston, Growth Hubs Manager, South East Midlands LEP

For businesses still relying on franking machines, manual mail preparation or trips to the post office, Postworks is building a more practical alternative.

The investment gives Postworks the backing to keep growing its outsourced mailing service, expand its print centre network and help more SMEs send business post online without the usual faff.