toob has raised £300m of capital to support its network expansion
toob is a full-fiber broadband provider building a brand new, fiber-to-the-premises (FTTP) network across the South of England. It aims to transform the internet experience for homes and businesses whilst narrowing the digital divide by supplying hyper-speed broadband fit for the modern era, at an affordable price. Founded by an experienced team, toob offers simple, affordable access to its full-fiber network so everyone in the community can benefit from hyper-speed broadband, regardless of income, technical knowledge or age. toob seeks to play an active role in the communities it operates in.
Backed by Amber Infrastructure Group, toob launched its service in 2019 and has reached a critical mass of approximately 140,000 premises and approximately 20,000 customers across Southampton, Camberley, Aldershot, Farnborough, Fareham and Gosport, England. toob has invested in building its automated systems, delivering a lean, scalable technology-enabled operating model, producing market-leading cost metrics that enable strong unit economics and underpin toob’s long-term competitive pricing.
Against unprecedented market headwinds, this financing will enable toob to expand its network to more than 300,000 households across the South of England. The market sentiment for UK fiber alternative networks (altnets) deteriorated significantly during the process, with several peers struggling to raise capital, but toob’s strong commercialization metrics and robust build methodology allowed it to attract strong lender interest even in these adverse market conditions. toob now has the capacity to continue into its next phase of growth, with a new committed funding partner alongside Amber.
Nick Parbutt, Chief Executive Officer of toob, stated, “We are delighted with the outcome of this process. This additional capital complements the backing we have enjoyed from Amber since late 2018, giving us the capital to extend our network to more than 300,000 premises, and most importantly, securing the financial security of the company as a platform for growth. The Lincoln team has been with us every step of the way, providing wise counsel and invaluable deal support to help us differentiate ourselves in an increasingly challenging capital market. We are very pleased that the business and our team have an exciting future ahead of us as we deliver for more communities across the South of England.”
Xenia Sarri, Managing Director in Lincoln’s Capital Advisory Group, commented, “We are pleased to have supported toob and Amber on this vital capital raise, the business is now able to drive forward its growth plans, continuing to roll out its competitive full-fiber broadband across the South of England. Despite significant macro and sector challenges, the deal highlights that there is still appetite from lenders to support UK altnets with strong credit characteristics. We were able to draw on our deep sector expertise to ensure we clearly articulated the strength of toob’s offering in the market and defensibility of the business, delivering a robust funding package.”
The Lincoln team has been with us every step of the way, providing wise counsel and invaluable deal support to help us differentiate ourselves in an increasingly challenging capital market.
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