VC-backed Velocity bolts on Uncover

Velocity is backed by seed-focused VCs Spark Capital, OATV and Lerer Ventures.

The purchase will see Velocity complement its existing hospitality payment offer with Uncover's meal reservation services. Following the add-on, the acquirer will operate with more than 800 restaurants worldwide, 60 of which are Michelin star establishments.

As part of the changes, Uncover's three co-founders David Saenz, Christopher Steinau and Dan Ziv will take up senior management positions at Velocity.

The add-on was financed with capital raised during a two-step series-A. In June, Velocity received a first $12m injection, followed by a $4m greenshoe in September.

Previous funding
In addition to VC funds, cash for the series-A was raised from individual backers such as former Thomson-Reuters CEO Tom Glocer, Initial Capital founder Shukri Shammas and Saxo Bank CEO Lars Seier Christensen.

In parallel with September's $4m round extension, which was led by Seier Christensen, Velocity landed its first major acquisition as it added on US peer Cover; the move helped the business expand from its London base into New York, San Francisco and Los Angeles, among other cities.

As part of the build-up roadmap, Velocity then set its sights on the Canadian market via a second bolt-on in October. This time around, its purchase target was Tab Payments, a fellow app used in more than 100 establishments in Toronto and Montreal.

Company
Founded in March 2014, Velocity develops an app allowing restaurant patrons to pay for their meals without the need to request a bill. The company operates headquarters in both London and New York City and is also present in Los Angeles, San Francisco and Miami. 

Uncover was created in February 2015 and claims to have grown to service 135,000 users and work with 350 London restaurants since that date.

People
Alex Macdonald and Zia Yusuf co-founded Velocity and currently share the CEO role. David Saenz co-founded Uncover and is the company's CEO.

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• Topics
• UK / Ireland
• Expansion
• Technology
• United Kingdom
• Acquisition finance
• Build-up
• Venture