Kernel Capital Bank of Ireland Seed Fund leads €900k Investment in Xintec Limited

Cork Ireland, 24 May 2012: Kernel Capital through the Bank of Ireland Seed and Early Stage Equity Fund has led a €900k investment in Luxembourg-founded Company XINTEC Limited (“XINTEC”), an innovative provider of fraud management and revenue optimisation solutions to telecom operators worldwide.  Established by Irish entrepreneur Sean Killeen in 2007, XINTEC re-located to Ireland in 2011 with the support of Enterprise Ireland under their programme to attract entrepreneurs to Ireland.  The syndicated investment comprises of a €350k investment by the Bank of Ireland Seed Fund with the remainder of funds provided by Enterprise Ireland, and private BES investors.

XINTEC delivers solutions to fixed and mobile operators to help them to maximise their revenues by eliminating revenue leakage and fraud-related losses.  A carrier’s bottom line can be significantly impacted by fraud with annual global losses in the telecoms sector from fraud alone amounting to approximately US$40bn[1] according to the Communications Fraud Control Association (CFCA).  XINTEC’s ‘lightweight’ technology which has earned the Company ‘Preferred Supplier’ status with the Vodafone Group enables rapid custom solutions, scalability and cost leadership. 

As Telecom operators’ shift to mobile commerce it is predicted that the threat of revenue leakage will inevitably increase.  In a recent survey conducted by advisory firm KPMG[2]; ninety-four percent of the telecom operators interviewed said they expected the threat of revenue leakage to increase, and almost half of them (49 per cent) believed that the increase would be significant.  XINTEC will use the investment to drive further growth in international markets and plans to expand its staff of 8 with the recruitment of technical and marketing resources over the next twelve months to support these growth plans.
 
According to Sean Killeen, XINTEC’s CEO: “Ireland is home to some of the industry’s top talent and it’s for this reason, along with an objective to grow this business indigenously, that we sought to re-locate the company here. XINTEC already punches above its weight in overseas markets, and offers a uniquely appealing environment for employees with the skills and drive to make a difference on the world stage. The reception by Enterprise Ireland, Kernel Capital and the investor community has been phenomenal. A positive culture and can-do attitude play an essential role in the success of an early-stage company and we are very excited by the level of enthusiasm and support out there for our business.”

“Increased competition in telecoms is driving operators to implement measures to decrease operating expenditure; revenue assurance and fraud management solutions are integral to this strategy.  Kernel Capital is pleased to support Irish companies like XINTEC operating in this important space" said Orla Rimmington, Operations Director, Kernel Capital.

Michael Moriarty, Enterprise Ireland Manager High Potential Start Ups added: “XINTEC stands out as an ambitious and innovative company, and we are delighted to have worked with them and supported their new venture in Ireland.  This investment round will help drive their continued development.  We see XINTEC as a candidate for strong growth with the potential to create quality jobs in Ireland.  Enterprise Ireland looks forward to continuing to work with the company on their international expansion plans.”

Welcoming the announcement, Donal Duffy, Head of Enterprise Ireland Relations, Bank of Ireland said: “We are delighted to support XINTEC, an innovative provider of Revenue Intelligence solutions for telecom operators. XINTEC is one of a number of dynamic, young Irish companies who have availed of the Bank of Ireland Seed and Early Stage Equity Fund which is managed by Kernel Capital. By being part of this fund, Bank of Ireland continues to support companies like XINTEC as they embark on the next stage of their growth and success and we are very pleased to be part of that journey.”

[1] The Communication Fraud Control Association, Worldwide Telecom Fraud Loss Survey, October 2011. http://www.cfca.org/pdf/survey/Global%20Fraud_Loss_Survey2011.pdf

[2] KPMG’s Global Revenue Assurance Report, March 2012. 137 executives worldwide were interviewed for this report; interviews were conducted anonymously between September and December 2011.

http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/newsreleases/pages/telecom-operators-shift-to-mobile-commerce-increases-threat-of-revenue-leakage-and-fraud-warns-global-kpmg-report.aspx

Contact Information

Orla Rimmington

Operations Director

Kernel Capital

Contact via E-mail