Growth Story: Defaqto

Sector

Technology

Investment date

March 2015

Website

www.defaqto.com

At a glance

  • 130% earnings CAGR

  • 2.5m data points

  • 8k rated financial products

WHY DEFAQTO

Defaqto boasts the UK’s most comprehensive database on financial services products. This vast pool of data, complemented by powerful analytic tools, is designed to serve a breadth of financial institutions, IFAs, and public sector clients. Ultimately, it provides key intelligence to aid better financial decision-making.

We believed a partnership with Synova would allow the Defaqto team to further expand their dataset, add more value for clients, and increase penetration with providers of financial products and independent financial advice. Crucially, we felt their needs were well suited to our in-house strengths: most notably, our sector-specific expertise, experience improving technology stacks, and the development of pricing strategies to support sales.

STRATEGY

Successful organisations are built on a strong sense of identity – an area in which Defaqto was lacking. We invested heavily in brand development, marketing, and PR, to help enhance the Company’s consumer position and thus expand its customer base.

We also worked with Defaqto to evolve the solutions that sit at the heart of its product offering. The team focused on expanding key datasets, as well as enhancing capabilities. By integrating advanced analytics, we were able to help customers better understand their product distribution, and compare performance with peers.

With an improved product, comes increased value. Accordingly, we conducted a review into pricing strategy, resulting in a strong boost to revenue.

Midway through our investment, we began collaborating with SimplyBiz Group PLC LON: SBIZ – one of the UK’s foremost providers of compliance and business services – to help build a new end-to-end financial planning product. The partnership worked so well, it was SimplyBiz we looked to when the time came for Defaqto to enter the next stage of its development.

OUTCOME

After four important years, we were proud of what had been achieved in partnership with the team. It was time to help them move Defaqto to its next stage, and to achieve their future goals. Synova successfully exited to SimplyBiz in March 2019, following a targeted sale process. We returned 3.9x cost.

“Synova’s support was instrumental in enhancing our market position, in assisting us with the evolution of our strategy, and ultimately in finding the right partner for the next stage of our growth.”

– Zahid Bilgrami, CEO

What next?

Read more about our strategies for growth
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