Irish development and growth capital fund Development Capital is investing €6m in Irish cloud based telecom provider IP Telecom.
The money is to be used to speed up the company's expansion plans through organic growth and acquisitions.
IP Telecom was set up in 2010 by Chief Executive Officer Shena Brien and Chief Technology Officer Brian Chamberlain.
It provides cloud-based voice over internet protocol (VoIP) and unified communications telephony services to over 4,000 small and medium sized business customers here, including Sureskills, Portwest, Decathlon, Repak, Right Price Tiles and the Irish Cancer Society.
The company has had significant year on year recurring revenue growth averaging 25% a year and is aiming to increase its annual revenue from around €6m this year to €11m next year.
"Now, together with Development Capital, who share our vision for success, we are looking forward to reaching new heights," said Shena Brien.
The investment is the 13th by Development Capital and brings to €100m the total amount it has invested in small and medium sized Irish businesses.
It is also the fourth by Development Capital Fund II, the second €75m fund managed by Development Capital.
The other three investments by Development Capital Fund II so far are Spotlight Oral Care, Nomadic Foods and Wogan Build Centre.
As part of the investment, Anthony O’Driscoll, who is the Investment Director at Development Capital, will join the IP Telecom board.
"We are delighted to announce details of this significant investment in another highly ambitious company and management team," he said.
"We are excited to partner with and back IP Telecom’s goal of becoming a significant player in the hosted business telephony sector, which has experienced significant recurring revenue growth and demand in recent years."
