Route optimisation and decarbonisation specialist The Algorithm People (TAP) has secured £2.2m in funding to accelerate its scale-up plans and drive domestic and overseas growth.

TAP is backed by a consortium of private investors led by Stephen Kelly, chair of TechNation and former CEO of Sage

The fresh funding follows last year’s announcement of a multi-million-dollar injection from experienced tech investors and comes as the company delivers 256% growth in annually recurring revenues (ARR) at the end of its third trading year.

TAP provides route optimisation and decarbonisation solutions for fleet modernisation, which it claims are proven to reduce costs, increase productivity and cut emissions by up to 30%. This enables fleets to operate more efficiently and transition to electric and other carbon zero vehicles.

“We have demonstrated a clear market need for our optimisation toolkit,” explained CEO Colin Ferguson. “We have also secured several major clients who are now taking advantage of the efficiency gains our technology offers.”

The business has already rolled out its solutions for key customers in Europe, with plans for other regions globally, including the US. The fresh funding will underpin the scale-up growth plans and help drive future technical developments. This includes the arrival of new, more powerful optimisation algorithms in 2023 powered by AI and machine learning, which will deliver more functionality for its clients and help solve new and emerging problems, including mixed fleet planning.

TAP is backed by a consortium of private investors led by Stephen Kelly, chair of TechNation and former CEO of Sage.

“We invested in TAP as we believe in the company’s vision to become a global market leader in optimisation and decarbonisation,” explained Kelly. “The strong performance over the past 12 months has supported that belief. This funding will accelerate the company’s growth plans, supporting cost reduction and the decarbonisation of fleets, helping them meet their net zero targets.”

Maven Capital Partners UK LLP is also a major investor in TAP, having first invested in 2020 to help with the development and launch of My Transport Planner.

Alan Robertson, partner at Maven and investment director at TAP, said: “As fleets seek to cut costs and transition to zero-emission vehicles, we see the opportunity for TAP to assist these organisations meet their decarbonisation targets and become part of their everyday operations.”