London fintech Yetipay has closed a £3.5 million funding round to accelerate growth of its payment processing platform targeting hospitality and retail businesses. The financing combines equity investment from prominent angel backers with innovative debt facilities from Berlin-based re:cap.
The seven-year-old startup provides payment terminals and processing services designed to reduce costs and simplify transactions for businesses across multiple sectors. Oliver Pugh founder of Yetipay, who established the company in 2017, has now secured more than £6 million in total funding since inception.
Hybrid Funding Structure
The latest round demonstrates an alternative approach to startup financing, splitting between £1.75 million in debt through re:cap’s Capital Operating System and £1.7 million in equity from individual investors. yetipay becomes the inaugural UK company to access re:cap’s newly launched €125 million credit facility, which is backed by HSBC Innovation Banking and Avellinia Capital.
“We focused on raising the minimum amount required and selecting investors that bring valuable deep payments industry experience, combined with innovative non-dilutive funding from re:cap” ~ Oliver Pugh founder of Yetipay.
Industry Veteran Backing
The equity portion attracted notable figures from the technology and finance sectors. Angel investors include Paul Statham from Condeco and Thoma Bravo, Mark Blandford of Blandford Family Office, Masabi‘s Ben Whitaker, Watchfinder‘s Lloyd Amsdon, PCP Capital’s Christian Riener, and HelpBnk‘s Simon Squibb.
“Their ability to generate significant traction with a lean, focused team – while delivering a very sticky product to a clearly defined market – makes them an exceptional partner.” ~ Christian Luecke, Chief Commercial Officer at re:cap.
Market Strategy and Expansion
yetipay currently operates across three European markets—the United Kingdom, Italy, and Spain—with ambitious plans for international expansion. The company intends to enter the United States, Australia, and New Zealand markets using the fresh capital injection.
“We are in a David vs Goliath battle with our larger competitors, where their massive OPEX commitments present a significant opportunity for our nimble, innovative and customer-centric approach.” ~ Oliver Pugh founder of Yetipay.
The startup’s lean operational model contrasts with established payment processors that typically carry substantial overhead costs. This efficiency focus allows yetipay to offer competitive pricing whilst maintaining service quality for independent businesses and larger enterprise clients.
Customer Base and Product Development
The platform has attracted diverse clientele spanning hospitality chains and retail operations. Notable customers include brewery group Brewdog, restaurant chain Pho, Grasso Soho, kitchen retailer Kütchenhaus, and Zenith.
Proceeds from the funding round will support continued platform development and new product launches aimed at both independent operators and enterprise accounts. The company plans additional feature releases throughout 2025 to strengthen its competitive position against incumbent payment providers.
The combination of non-dilutive debt financing with strategic equity investment reflects broader trends in European fintech funding, where startups increasingly seek alternatives to traditional venture capital models that require significant ownership dilution.