Business intelligence platform Red Flag Alert has secured a £4m Series A+ investment.
The news comes 18 months after the Manchester-based firm received a £3.5m private equity investment from Foresight Group.
The latest investment comes from a combination of Foresight Group and Ric Traynor, founder and executive chairman of Begbies Traynor.
Since the initial £3.5m investment, Red Flag Alert has tripled its client base from around 200 to 600; nearly trebled its ARR from £1.8m to £5.2m; and gone from around 20 to 51 staff.
Its vision is to reach £10m ARR in the next two years.
Red Flag Alert CEO Richard West said: “In the last six months we’ve seen an increase in enquires from more enterprise and mid-market companies.
“This has resulted in onboarding three customers in the last couple of months who are the biggest in their industries.
“As a part of the Series A+ investment we will move adjusting our GTM strategy to focus on five core markets that play to our strengths – financial services; accounting; legal; construction/manufacturing; and business utilities.
“What we need to look at now is upgrading our technology to support a bigger and more sophisticated client base, which we didn’t focus on when we got our initial investment.”
As well as the investment, Red Flag Alert recently recruited Vincent Kilcoyne as chief product officer.
Kilcoyne has over 20 years of experience working with FinTech companies and will help the company deliver its growth strategy.
West added: “The whole point of this investment is about delivering demonstrable value for shareholders.
“We still know that we will get to our goal of hitting £10m ARR, but what we now want to do is build out all the other SaaS metrics that have the biggest impact for current shareholders.
“I want our business to have record levels of customer retention in our industry.”
Red Flag Alert says it has modernised the way that companies consume data, with real-time information on over 15 million UK businesses.
Red Flag Alert has also gone global with its product offering in both KYB and KYC solutions. In January the intelligence platform launched consumer credit reports to bolster its KYB/KYC offering.
With the shift in focus towards targeting these larger organisations, West has set out a clear plan for the future of onboarding customers.
“We onboarded around 150 customers last year,” he said. “Of course, we would love to onboard an additional 150 customers in 2025, but with our change in GTM we will be looking to onboard fewer clients , but for more revenue than we generated in 2024.
“With the investment, we are now in a fortunate position where we can pivot our GTM strategy without risking any short/medium term goals.”