Mallzee adds in-app purchasing … and £2.5m

The shopping app developer Mallzee is expanding after securing £2.5m from investors.

The money was raised in a funding round led by the Royal Mail Group and backed by investors, including the Scottish Investment Bank, Par Equity and technology entrepreneurs.

The latter include Gareth Williams, chief executive of Skyscanner, Rob Dobson, who founded the mobile network analyser Actix and is a current investor in Internet of Things firm 1248, and Chris Van Der Kuyl and Paddy Burns, of 4j Studios, makers of Minecraft for the XBox 360.

Mallzee said the money would allow it to “scale its global offering”.

The app, available on Android and iOS, includes more than 100 retailers, and lets users create so-called “style feeds,” price-drop alerts, and peruse style advice.

However, an omission in Mallzee’s offering so far has been e-commerce — the app merely links to retailers’ websites to complete transactions.

Starting today, Mallzee is offering in-app purchasing to UK shoppers, with plans to bring this to US consumers by the end of the year.

The company was founded in 2013 by 27-year-old Edinburgh-based entrepreneur Cally Russell.

Russell pressed ahead with developing the app after turning down an offer of investment on the BBC’s Dragons’ Den programme.

“This round of investment is going to allow us to become the leading fashion shopping app in the world and the mix of investors is going to be vital to allowing us to achieve this,” said Russell.

“With Royal Mail Group we have a partner that plays a vital part in the online shopping environment and one which is well positioned to enable us to access new retailers.”

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