Truphone finally gets new owners

UK-based eSIM specialist Truphone has been acquired by investors at the end of a lengthy and fraught process.

In the wake of the Russian invasion of Ukraine, Truphone found itself in hot water due to the assertion that it was indirectly owned by a group of Russian oligarchs. Soon after it was reported that the company would be acquired for a nominal sum by a couple of investors not, at that time, citizens of a country on the international blacklist.

But then, again according to the FT, one of Truphone’s founders stepped in with a bid of his own towards the end of last year, which presumably delayed the completion of the deal. But now the company has announced that German businessman Hakan Koç and private equity investor Pyrros Koussios have taken control of the company, as was expected half a year ago.

“I know a great tech company when I see one,” said Koç. “Truphone’s R&D hub in Lisbon is impressive. We now look forward to executing on our accelerated growth plans and deliver new and innovative products for our customers. The funding that we are providing will accelerate capital investment in the core network, while building new software and API-driven digital capabilities to address not only the needs of enterprises but also those of tech companies.

“I consider myself the startup ambassador of the company and it reminds me of banking before the Fintech-wave: this may be one of the last big industries where tech meets legacy processes, and we are here to fix it – it will be fun.”

“We were attracted to the breadth and sophistication of the services offered,” said Koussios. “The company has continued to grow strongly in 2022 despite the uncertainties caused by its prior ownership and delivered growth well above 20%. This impressive performance underlines the quality and resilience of the business as well as the commitment of its employees.”

Because of those uncertainties, the deal required National Security and Investment Clearance from Grant Shapps, the UK Secretary of State for Business, Energy and Industrial Strategy. As an eSIM specialist, Truphone does seem well positioned to capitalise on broader trends in the tech and telecoms industries, so long as the market is prepared to take the new-look company at face value.

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