Cuckoo Broadband Secures $6 Million to Disrupt UK Broadband Market

Cuckoo Broadband, a London-based startup, has successfully secured a $6 million investment deal led by RTP Global, a Russian venture capital firm. This funding round also saw participation from JamJar Investments, a London-based investor, and other individual investors, including former team members from Monzo and Stripe, as well as Verizon’s former EMEA director.

Cuckoo Broadband, founded in 2019 by CEO Alexander Fitzgerald, aims to disrupt the UK broadband market by offering a simple, transparent, and customer-friendly service. The company provides a single 67 Mb/s fibre connection on a rolling monthly contract with no hidden fees, a stark contrast to the complex deals and high prices offered by traditional broadband providers.

The UK broadband market has long been criticized for its customer-hostile pricing practices, inflexible contracts, and poor customer service. According to UK consumer group Ofcom, around 40% of broadband customers, or 8.7 million people, are out of contract and pay an average of £4.70 per month more than their provider’s average price for their service. This phenomenon is known as the broadband loyalty tax, affecting over 25,000 people without their realization.

Cuckoo Broadband seeks to address these issues by offering a straightforward and affordable service. The company claims that switching to their service can save consumers around £130 on their broadband bill, while providing double the average UK speed. In 2021 alone, Cuckoo Broadband grew more than 250% and launched nationally on uSwitch, a significant milestone in their expansion.

The funding from RTP Global and other investors will be used to increase the size of the team, expand marketing efforts, and enhance customer acquisition strategies. RTP Global partner Gareth Jefferies noted that consumer broadband is one of the largest yet poorly served markets, and challenger providers like Cuckoo Broadband are poised to disrupt the status quo with differentiated product offerings and a fresh respect for customers.

Alexander Fitzgerald, CEO of Cuckoo Broadband, emphasized the importance of fast, reliable, and affordable broadband, especially with millions of people working from home. He stated that the broadband market is broken and consumers are being ripped off daily, highlighting the need for a better alternative.

Cuckoo Broadband’s approach to simplicity and transparency is a breath of fresh air in a market dominated by traditional providers like BT, Sky, Virgin Media, and TalkTalk. The company’s commitment to customer service and fair pricing practices positions it as a significant challenger in the UK broadband market.

The investment from RTP Global and other investors is a testament to Cuckoo Broadband’s potential to disrupt the market and provide a better service to consumers. With this funding, Cuckoo Broadband is poised to continue its rapid growth and expansion, offering a more affordable and reliable broadband service to millions of customers across the UK.

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