AWS partner Arcus boosts growth plans with second multimillion-pound investment

Arcus adds to £3m round raised last year

Amazon Web Services (AWS) partner Arcus Global has raised £2.5m in Series A funding, adding to a £3m injection it received last year.

Arcus said the funding will be used to invest in its product portfolio, particularly its flagship local government platform and Amazon Alexa-powered voice solution.

Denis Kaminskiy (pictured), CEO of Arcus Global said: "This new investment from existing shareholders is a huge sign of confidence in the execution of our strategy to deliver innovative cloud solutions to enable the digital transformation of the public sector.

"Their continued support is an endorsement of the rapid progress we're making in disrupting the GovTech software market."

Arcus Global reported sales of £13m for the 12 months ending 30 June 2018, up 34 per cent on the previous year.

This latest funding round was led by YFM Equity Partners, which also invested the first part of Arcus' Series A funding last year.

Eamon Nolan, partner at YFM Equity Partners, said: "Undoubtedly, outdated legacy systems are holding back organisations in the public sector.

"Arcus Global is making great steps to help drive true digital transformation with leading local authorities, universities and the NHS across the UK and we are excited about the positive impact this has and what Arcus is set up to achieve over the next few years."

Arcus was traditionally a public sector reseller, but over recent years has placed more emphasis on its own software development as a way of differentiating itself.

Its Arcus Answer platform provides a bot for local authorities that will interact with customers and complete basic tasks.

Speaking to CRN last year, CEO Kaminskiy said that Arcus' wider platform is the first of its kind in the public sector.

"We have done a wholesale transformation with a couple of councils where eventually the whole council went onto one technology platform, giving them pretty amazing savings. It's genuinely one platform, one database, single record, which I think is completely unprecedented in the public sector," he said.