ZEAL Investments (ZI) has invested GBP1 million in the Free Postcode Lottery (FPL), a free to play online lottery platform funded by advertising.
The deal, which marks ZI’s first investment, is c coup for the seed funder, which only launched officially in November 2016 and has already announced a partnership with start-up accelerator MassChallenge.
ZI, part of the ZEAL Network SE group, was launched to help prospective lottery start-ups and entrepreneurs grow and disrupt the industry.
Founded in 2011, FPL has become the top free to play, ad-funded lottery in the UK. With over 300,000 current daily active users, it is forecast to generate about GBP1 million in revenue and GBP400,000 in EBIT in 2016.
The deal buys ZI a 10 per cent stake in the new lottery initiative.
James Oakes, director of ZI, says: “Partnering with the Free Post Code Lottery is a fantastic opportunity for both parties. Not only have the FPL team created a hugely promising business in a particularly interesting gap in the market, but they have also developed an initiative that really disrupts the lottery status quo. It is this joint vision in subverting the industry that makes this partnership so attractive for both parties. We cannot wait to see the FPL reach its full potential.”
Chris Holbrook, founder of FPL, says: “Partnering with ZI represents a massive step towards shaking up a slow moving industry. It is clear that the global lottery market is in desperate need of some fresh and original ideas such as the FPL. It is fantastic to see companies such as ZI’s commitment to seeking out the most ambitious companies operating within the market with the potential to shake up the lottery industry and propel the sector forward.”
ZI will act as a strategic partner, providing guidance in strategy, data and compliance capabilities to the FPL. This will be an advisory role in which the FPL will remain in full control of the business.
