Frog Capital, the growth investor, today announced its £3 million investment in Rated People, the UK’s leading online service connecting homeowners with quality, local and recommended tradesmen, based on reviews and ratings from other homeowners in the Rated People community.
Last year, Rated People generated £7 million in revenue, was profitable for the third year in a row and led the market by generating more than £500 million in home renovation and repair business for tradesmen using its service. The company is one of the fastest growing companies in the UK, with a 47% compound annual growth rate over the last three years. Frog’s investment provides Rated People with growth capital to continue recruitment and invest in its online platform and mobile applications.
Founded in 2005, London-based Rated People is transforming the £39 billion home improvement industry by providing a trusted, convenient marketplace to connect homeowners and tradesmen, creating substantial value for both.
For homeowners, Rated People offers access to more than 30,000 high quality local tradesmen in the UK, representing 24 trades including bricklayers, builders, carpenters, electricians, painters, plumbers and roofers.
For tradesmen, Rated People offers access to more than 250,000 home improvement and repair jobs a year, helping tradesmen generate more business and find work closer to their preferred locations. Tradesmen also like the fact that Rated People helps build their reputation by generating real, community-based recommendations based on the work they have completed. This also helps them to price their work in line with their Rated People profiles.
“We have been very fortunate to date. We have a great business model and create great value – more than £1 million for tradesmen every day,” explains Andy Skipwith, CEO and founder of Rated People. “We also have a fabulous team and an exceptional board, which have enabled us to achieve incredible growth. To accelerate this growth, we recognise the importance of capital and strengthening our board. Together, this will help us deliver even more value to our tradesmen and homeowners. Frog is a great partner and I am thrilled to have them on board.”
Mike Reid, Frog’s Managing Partner who will join the Rated People board, added: “Rated People have seized upon an enormous market opportunity by pioneering an easy solution to an age-old conundrum: how to find a quality, trusted tradesman. What excites us is that their service also involves and directly benefits tradesmen, who can now earn more money, work closer to home and build a better long-term business around their own brand and reputation. It is a cost-effective and efficient solution where both sides win.”
Frog Capital was advised on this investment by Wragge & Co. and Craig Corporate. Rated People was advised by Rohan & Co. and FirstCapital.