The privately-owned company, of which tech entrepreneur Simon Hackett is now the majority shareholder, announced the capital raising on Tuesday in response to what it says was “increasing client demand”.
According to UltraServe — which specialises in delivering e-commerce applications in the cloud using its proprietary SmartStack software — it is achieving strong international growth having opened its US office in 2016 and a new European office recently.
UltraServe chief executive Matthew Hyland said the additional capital would enable the company to accelerate its international expansion and innovation. "We'll use these funds to further our geographic expansion into Europe, to build out our US operations and to accelerate product enhancements," he said.
"International demand for our services is very strong as demonstrated by the number of new contracts signed with major global customers during the last 12 months, with about three-quarters of these new customers coming from the US and now the European markets.
"Our sales pipeline is heavily weighted towards the US market, producing more than 75% of our new customer opportunities, while we've already seen strong interest from the European market despite only opening our office in the UK a few weeks ago.
"To date, we've managed to achieve all this through self-funding, via our operating cash flows. By bringing in new capital, we can build on these foundations, accelerate our growth plans, and grab the significant global market opportunity that we see in front of us."
According to Hackett, UltraServe had a “unique competitive advantage”.
"UltraServe has created outstanding technology that orchestrates, manages and hosts the deployment of enterprise-level Internet commerce websites," he said.
"UltraServe's technology turns a complicated, slow and error-prone manual deployment process for e-commerce participants into a smooth, automated, rapid and reliable experience. SmartStack equips customers to innovate at the speed of their thought processes rather than at the speed of their system administrators."