VEEZU (NEWPORT)

Origins

Paul Ragan founded Motaquote Insurance in 1991, which became Wales’’ most aggressive consolidator in the Motor Insurance sector, where after some 18 acquisitions, Mr Ragan sold the business in 2008. Mr Ragan acquired a small Taxi Business in Dec 2008 (Radio Cabs in Bridgend) purely as an investment and never worked in the business until 2013. It was at this point Mr Ragan considered the dynamics of Radio Cabs most interesting and subsequently spent six months undergoing due-diligence on the Private Hire Sector before putting a strong team together and presenting to funders in October 2013 about his ambitions and plans to lead consolidation. It was then that Veezu was born.

Our main challenges when starting the business

The major challenges in starting Veezu were resource and industry credibility. To secure funding at the outset involved several months of industry due-diligence, growth planning and commitment from a “top-heavy” team to ensure a suitable credible consolidation proposal was recognised and subsequently supported.

Success Factor

The key factors in Veezu’s success include a strong management team, industry dependence on technology (especially consumer app and cloud-based dispatch capability), and an ability to transition acquired businesses through KPI Performance and new technology

The Future

Growth plans have not changed since the initial funder presentations back in 2013. The target is to get to 5,000 Private Hire Vehicles by 2016/17, with aspirations to double that by 2018/19. Today the business is funded through Santander Bank supported by its growth capital team “Breakthrough” in addition to Beechbrook Capital based in London. Both have provided the necessary funding to avoid shareholder dilution. The next 12 months will see Veezu refinance to achieve the growth plans as set out for the business in 2013.