Touchstone, Woodford and Metro back Imperial College start-up

A London-based payment app, launched at Imperial College, has attracted £12 million of funding from the likes of Neil Woodford and the university’s venture capital arm Touchstone Innovations.

Yoyo Wallet, which lets you pay for things via your smartphone, had clinched the cash through a Series B funding round led by German cash-and-carry giant Metro Group.

Touchstone has promised £4 million. Metro and Woodford did not say how much they ploughed into the business but Metro’s digital business guru James Hook is joining the Yoyo board. The cash will be used to grow abroad. “We could not have found a better combination of investors to support us through this next stage of growth,” co-chief executive Alain Falys said.

Yoyo was founded in 2013 by Falys, Michael Rolph and Dave Nicholson and started life for use at 32 cafés and shops across Imperial’s campus.

The company recently signed a deal with Caffè Nero to become its mobile payment partner meaning the system will be rolled out across the coffee shop’s 600-plus stores.

Touchstone angrily rejected a £500 million takeover bid from peer IP Group earlier this month.