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WANdisco secures £24m lifeline amid fraud investigation

Image credit: T. Schneider via Shutterstock

Data firm WANdisco has secured £24m in funding as it looks to steady the ship after it was rocked by an internal investigation that uncovered potential fraud.

The Sheffield-based company began seeking funding in May as it looked to avoid a collapse over the summer.

The firm has now issued 47.5 million new shares, with Global Frontier Investments and Davis Capital Partners among the investors backing the company in its latest fundraise.

WANdisco was thrown into crisis earlier this year after an internal investigation found its 2022 full-year revenues could be as low as £7.5m rather than the £20m claimed in its company accounts.

Shares in the company were suspended on the AIM market in London after the discovery was made by the CEO and the CFO.

The two executives, David Richards and Erik Miller, later resigned, though the company insisted the move was not related to the irregularities in the financial reports.

The Financial Conduct Authority (FCA) launched a probe into the company in April to investigate the potentially fraudulent activity.

WANdisco has been fighting to stay afloat amid the continued controversy and cut 30% of its staff in May. The data firm is ultimately seeking a return to trading on the AIM market.

Prior to the scandal, the company was considering listing on the New York Stock Exchange.