ETG buys Lightning Reach in GovTech portfolio boost

European Technology Group has acquired financial support portal Lightning Reach, bringing the UK platform into its GovTech investment portfolio.

Lightning Reach said the change in ownership will leave its operations and team intact. Chief Operating Officer Rhiannon Sheridan has become Chief Executive Officer, while founder Ren Yi Hooi will remain involved as a Director on the Board.

The acquisition comes as pressure grows on public bodies, charities and utilities to improve how financial aid reaches households. More than 20 million people in the UK live in financially vulnerable circumstances, and more than £24 billion in support goes unclaimed each year, according to the companies.

Lightning Reach was set up during the Covid-19 pandemic to bring different support schemes into one digital application journey. Since launching in late 2021, its platform has reached more than 300,000 people and facilitated more than £25 million in financial assistance.

The business works with more than 100 organisations across the UK, including utility providers, local authorities, charities, housing associations and banks. Its model is designed to reduce administrative work for institutions while helping people find and apply for support spread across multiple schemes.

Leadership change

The transaction also formalises a leadership handover already under way. Sheridan, previously Chief Operating Officer, takes charge as the business enters its next stage under ETG ownership.

Hooi described the sale as the point at which the company could continue its mission beyond its founding leadership.

“I’m incredibly proud of this milestone. Lightning Reach started as a nascent idea during the pandemic and is now a thriving impact business, helping hundreds of thousands people access over £25 million in financial support with over 100 partners across the UK. I’ve always wanted to make sure our impact as a company can outlast my role as the founder, and it’s clear we’ve reached this point. Rhiannon has been an exceptional leader since she joined our early team nearly five years ago and is the ideal person to lead our next phase, with ETG providing the dream long-term home that will allow us to stay laser-focused on our mission,” said Ren Yi Hooi, Founder, Lightning Reach.

Rhiannon Sheridan, CEO of Lightning Reach, said the company would continue to focus on access to support while expanding its reach.

“When I joined Lightning Reach, we were a tiny team with a big goal, to make it easier for people to access support while removing the manual work that slows organisations down. It has been a privilege to be part of the journey and I’m honoured to take on Ren’s legacy as CEO as we enter this next chapter. With ETG’s long-term backing, sector expertise and clear alignment with our mission, we have the right partner to help us scale sustainably, deepen our partnerships and keep investing in the platform as we work towards helping one million people access financial support by 2028,” said Sheridan.

Growth plans

ETG said Lightning Reach is its third investment. The group focuses on software businesses serving the public sector and other regulated industries in Europe, and says it has more than 400 public sector clients across six countries, serving a combined population of more than 14 million citizens.

For Lightning Reach, ETG’s appeal appears to lie in access to a buyer with experience in public sector technology and procurement. That matters in a market where councils, charities and service providers often face fragmented systems, budget constraints and reporting demands when distributing grants and other support.

Lightning Reach said it had quadrupled annual recurring revenue over the past year while remaining cash-positive. It was previously backed by nearly 30 investors, including the Joseph Rowntree Foundation, Big Issue Invest and Techstars.

ETG’s management framed the acquisition as a bet on a business with an established footprint in a part of the social support system that remains difficult for many households to navigate.

“Lightning Reach is tackling one of the most important challenges out there: making sure people in financial hardship can actually access the help they are entitled to. The team has built something genuinely special, with a brilliant product and real proof of impact. We see a significant opportunity to grow its reach across the UK and beyond, and we could not be more excited to support Rhiannon and the team as they scale,” said Lars Becker, Chief Executive Officer and Co-Founder, ETG.

The wider problem Lightning Reach is trying to address is not only low awareness among potential applicants, but also the patchwork nature of support provision. Help is often offered by different organisations using separate rules and manual processes, making it harder for individuals to claim and for institutions to deliver aid efficiently.

That operating environment has created a growing market for platforms that sit between support providers and claimants. Lightning Reach says its system offers a single route into different types of assistance and helps partner organisations process applications more quickly.

“What drew us to Lightning Reach was the combination of a genuine social mission, an exceptionally talented team, and a platform that makes accessing and delivering financial support faster and simpler for everyone involved. With our long-term backing, resources and entrepreneurial culture, we believe Lightning Reach can continue scaling its impact to support many more people. We are thrilled to be part of the next stage of the journey,” said Sjoerd Smaal, Chief Financial Officer and Co-Founder, ETG.