Online accountancy firm Mazuma has secured private equity funding from Innovation Investment Capital (IIC), which is backed by the Cardiff Capital Region (CCR)
IIC has made a multimillion-pound investment in Mazuma, a Bridgend-based accountancy firm founded by Lucy Cohen and Sophie Hughes in 2006.
The PE fund targets investment proposals between £2m and £7m per deal to support high-growth, technology-focused companies located in, or expanding to one of the 10 local authority areas in the Cardiff Capital Region.
This is the second deal the IIC has signed off in southeast Wales as part of a plan to drive growth in the region.
Mazuma has four directors and 27 staff, and specialises in accountancy services for micro businesses. The online only service has developed a proprietary web portal branded as Mazapp to provide accountancy services and has adopted a monthly subscription model.
Over the past year, Mazuma has been scaling the business and rolling out the MazApp technology. With the addition of this new investment from Innovation Investment Capital, Mazuma will accelerate the development of its new accountancy technology solutions, expand the marketing and sales teams in Bridgend, and invest in the firm’s infrastructure and operations to support growth.
Lucy Cohen, co-founder and CEO Mazuma, said: ‘We are thrilled with this investment and look forward to working with the Innovation Investment Capital team, who share our goals and vision.
‘We can now accelerate the development of our proprietary technology and leverage our position to pursue long-term strategic goals.
‘As a woman who has spent the last 17 years in such a male-dominated space, what we have achieved here, and what we will achieve in the future, will hopefully give people the confidence to back female-led businesses.’
IIC’s decision to invest was based on several key factors, including the quality and clarity of vision of the firm’s co-founders as a proven management team, with the ability to successfully execute their plans, demonstrating a successful track-record and the opportunities to further grow in the accountancy market.
The firm’s technology and ability to further disrupt the traditional micro-business accountancy space was also seen as a key factor.
Cllr Anthony Hunt, chair of CCR’s regional cabinet and leader of Torfaen County Borough Council, said: ‘What Mazuma has achieved and its vision for the future is phenomenal. It is a home-grown story, run by two trailblazing women.
‘Our investment shows the depth of quality companies we have across the whole of our region, with this investment helping to take Mazuma to the next stage of its journey.’
PwC has provided Cardiff Capital Region City Deal with support in setting up and launching the fund, and has advised and provided operational support to alternative investment firm, Capricorn Fund Managers, in the sourcing of investment, and screening and reviewing potential investee companies.
‘Ever since our first conversations with Lucy and Sophie in April 2023, what has always stood out has been their passion, focus and vision to innovate and disrupt the accountancy sector,’ added Rob Asplin, PwC partner. ‘Based on our discussions, we believe that Mazuma has an exciting future ahead of it.’
The Cardiff Capital Region (CCR) City Deal was set up in 2016 between the UK government, the Welsh government and the 10 local authorities in south east Wales with funding of £1.2bn to bring significant economic growth into the region through investment, upskilling, and improved physical and digital connectivity.
The Mazuma investment is IIC’s second investment, with the first in AMPLYFI, the Cardiff-based disruptive generative artificial intelligence business, which was announced in September. To date, the fund has received over 160 applications for funding from potential investee companies across southeast Wales.
Pictured L-R: Sophie Hughes and Lucy Cohen, co-founders, Mazuma