Israeli startup Osu raises $3.2 million to help self-employed workers in the UK
The company helps self-employed and freelancers accept and manage payments through an app
Osu, an Israeli app developed for the UK’s self-employed sector, has raised $3.2 million in seed to help freelancers manage and accept payments for their work. The round was led by Creandum, a European early-stage venture capital firm that was an early backer in companies like Spotify, iZettle, and Klarna, and marks their first investment in Israel. Additional participants included VC funds Firstime, Ada Ventures, Breega, and Amelia, alongside private investors Charles Delingpole of ComplyAdvantage, Will Neale of Grabyo, and Michael Pennington of Gumtree.Osu has developed a platform that allows freelancers and self-employed to accept and manage payments through an app. It has zero transaction fees and allows its users to capture 100% of each sale. The app aims to remove several pain points currently occurring for the self-employed, including hidden costs, delays, or error-prone bank transfers, particularly during the Coronavirus pandemic.
“At Creandum, we like to see companies that are not forcing merchants to use a different infrastructure but facilitate more, easier, and faster business and hence becoming an obvious choice for customers,” added Johann Brenner from Creandum. “Open banking will enable payment disruption for small merchants much like we saw iZettle do that. With Osu, we have found the Swiss Army knife for sole traders and couldn’t be more excited to support the team on their journey to become the No. 1 payment app for the self-employed.”To date, Osu has worked with 1,000 self-employed professionals and helped them accept hundreds of thousands of pounds worth of payments. Following the funding, it is aiming to grow its customer base to as many as 10,000 as early as next year.