Global technology consultancy hedgehog lab has secured £6.3 million investment from BGF – one of the largest and most experienced growth capital investors in the UK and Ireland.

As part of the multi-million-pound deal, the business has announced the acquisition of York-based digital product consultancy Netsells, in a move that will support the company’s ambitious growth plans.

Headquartered in Newcastle and with operations in the US and Bulgaria, hedgehog lab works with a wide range of global brands, including AJ Bell, Aviva, Deliveroo and Tesco Bank. It provides businesses with cutting-edge mobile app and web development solutions and has grown rapidly since incorporating in 2007. 

Netsells is a digital product consultancy working across web and mobile, it is ranked as one of the North’s fastest growing tech businesses.

The two companies will come together under the hedgehog lab brand and will be headed up by hedgehog lab’s current CEO Sarat Pediredla alongside a new executive board that includes ex-Accenture Song managing director and Karmarama founder Ben Bilboul.

Operating in the fast growth mobile and web development sector, BGF’s funding will enable the Group to further expand its service offering to enterprise clients and SMEs in both the UK and US.  

Sarat Pediredla commented:

“The acquisition of Netsells is a major milestone for us as a company. The combination of two firms with established and renowned capabilities will enhance our offering and growth prospects massively by bringing together some of the best talent in the industry and facilitating our continued expansion into new international markets.”

The deal was led by John Healey and James Baker, investors in BGF’s Yorkshire & North East team.

BGF’s John Healey said:

“We are delighted to be supporting hedgehog lab on the next stage of its growth journey. The company has already established itself as a leading global digital product consultancy and the acquisition of Netsells will combine the talent and capability of two great teams, unlocking more opportunities in this exciting sector and positioning the business as a credible player of scale in the global digital marketplace.”

hedgehog lab & Netsells were advised by Cowgills (Corporate Finance & Tax) and Hill Dickinson (Legal).

BGF was advised by Weightmans (Legal) 

The deal provides a full exit for hedgehog lab’s previous investor, Maven. 

ENDS

Notes to Editor

About hedgehog lab
hedgehog lab is a human-centered global tech consultancy. Our experts in UXR, UI/UX, engineering, AI, cloud, & data science work with our partners to deliver custom app development and digital transformation services. With over 15+ years of digital product experience, our team is skilled at developing human-centered solutions that drive real business impact for partners including AJ Bell, Aviva, Deliveroo and Tesco Bank. Our team members work and play all over the world, but our main digital labs are located in Newcastle upon Tyne UK, Boston, USA and Sofia, Bulgaria.

www.hedgehoglab.com / @hedgehoglab

About Netsells

Netsells is a leading UK-based digital agency that specializes in bespoke software solutions for businesses in various sectors, including finance, healthcare, and retail. Since its establishment in 2009, Netsells has grown to become a prominent player in the software development industry, with a team of over 40 experienced developers, designers, and strategists. The company offers a wide range of services such as web and mobile app development, bespoke software solutions, and digital transformation consulting, all tailored to meet clients’ specific needs and goals. Netsells has worked with a diverse range of clients, from small startups to large multinational corporations. Its client list includes names such as Itsu, Hiscox, Warburtons.

www.netsells.com / @netsells

About BGF

BGF was set up in 2011 and has invested over £3.5bn in more than 500 companies, making it one of the most active growth capital investors in the UK and Ireland. Investing from a balance sheet of c. £2.5bn, BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs. BGF invests in growing businesses in the UK and Ireland through its network of 15 offices. BGF models have now been set up in Canada and Australia, with other countries evaluating the opportunity to replicate this.

www.bgf.co.uk / @BGFinvestments