The telecom industry has been lagging in the past few years, especially in Europe, holding the industry back from investing in new services. The already bleak picture has worsened due to the cost-of-living crisis as the government puts telcos under more pressure to cut costs.
Owing to the ongoing disruptions and changing customer expectations, telcos are struggling to grow under pressure from competitors and global supply chain issues.
Attempting to change the traditional telco infrastructure through its cloud-based platform, Swedish telecom tech platform Telness Tech has raised €8.5 million in funding.
The extra cash will help the startup to boost the European telecoms market through integrated solutions for telcos. The Series A round was led by Stockholm-based VC Industrifonden and backed by its existing investor, JCE Group. The new tranche of funding takes the total raised by the holding company Nordic Communications Group - which owns both Telness, the operator, and Telness Tech - to €15 million.
Founded in 2021 by Martina Klingvall, Telness Tech aims to disrupt the telecoms market with cloud-based infrastructure for businesses to increase customer happiness and lower operational expenditure.
The platform, already used by Telness to deliver telecom services to well over 15,000 business customers in Sweden, packages up a cloud-based, digital end-to-end solution that liberates traditional telcos from legacy infrastructure, cost, and complexity.
Martina Klingvall, founder of Telness Tech said: “Our platform has already started to transform how services are delivered to end customers - putting customer service first and raising the bar for what people should expect from a mobile provider. Over the next year we’ll be laser focussed on investing more into the team and making some key strategic hires, plus our expansion into other European markets.”
Tore Tolke, senior investment director in Industrifonden added: “Telness Tech is disrupting the telcos market and it is bound to grow in new markets across Europe at a rapid rate.”