Purple Transform – an AI data analytics business that helps to identify and prevent incidents such as theft, trespass and antisocial behaviour on railway lines – has raised £4.5m in a funding round led by Mercia Ventures via the Midlands Engine Investment Fund II and backed by Sure Valley Ventures.
The funding will enable the company to scale up its activities following a series of contract wins in the rail industry, deploy its technology in other sectors and expand its operations in the West Midlands.
Purple Transform’s SiYtE system aggregates data from CCTV cameras, IoT sensors and other sources, then uses AI, machine learning and computer vision to analyse it and provide actionable insights. SiYtE provides an intelligent eye on every camera and alerts staff to potential risks. As it can be used with older cameras, there is no need to replace existing equipment.
Founded in 2021, Purple Transform brings together senior executives from Cisco, Network Rail, telecoms and government. Its technology is currently installed across the rail network with over 900 cameras and sensors for applications such as detecting people or safety hazards on the lines, reducing crime, spotting vehicles at level crossings and protecting equipment at remote sites.
The system has alerted transport police to numerous incidents and the company is working with Lancaster University to assess its impact on preventing suicides. According to British Transport Police, it reduced cycle thefts by 72% over three months at one site and resulted in 13 prosecutions.
The Oxfordshire-based company currently employs over 50 staff including some in the West Midlands where one of its key customers is located. The investment will enable it to open a new technology and logistics centre in the region, creating new jobs within the coming months with further expansion in the years ahead.The West Midlands site will also give it better access to major manufacturers which are a key target audience, and to engineering and IT graduates from the region’s universities.
As part of the funding round, Alex Brown – the former CEO of Cisco UK and Ireland – has been appointed as the company’s Chair.
Gregory Butler, co-founder and CEO, said: “Purple Transform’s mission is to unlock the full potential of technology to enhance safety, security, efficiency, and overall human well-being. Having successfully deployed our technology in rail, which is a highly complex environment, we’re looking forward to expanding into critical national infrastructure, ports, and manufacturing among other new areas.”
Jonny Nixon of Mercia Ventures added: “Purple Transform brings together a very high-calibre team with an in-depth knowledge of the rail industry and a strong culture of innovation. The company gained early traction and is now growing rapidly and winning significant contracts in the UK and beyond. This funding will help it to establish itself in the Midlands as the leader in the rail sector and expand into other industries.”
Barry Downes, Managing Partner, Sure Valley Ventures, commented: “As an AI Fund, this is exactly the type of business we like to back; founders with deep technology insights who then harness the power and utility of AI to provide real world practical benefits. What Greg and the team at Purple Transform are doing will be very impactful; not just in the rail sector but across a whole range of industries”.
About Mercia Ventures
Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.
Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
- Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697
About the Midlands Engine Investment Fund II
- Operated by the British Business Bank, the Midlands Engine Investment Fund II (MEIF II) provides a mix of debt and equity funding. MEIF II offers a range of commercial finance options with small loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support smaller businesses in the Midlands at all stages of their development.
- The funds in which the MEIF II invests are open to businesses with material operations, or planning to open material operations, in the West and East and South East Midlands.
- Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
