Truphone said it will get GBP 51 million in new financing from existing backers including Russian steel billionaire Alexander Abramov, Reuters reported, adding that the company was planning to eliminate a quarter of its existing workforce. In October, it employed 700-800 staff. The company's losses widened to GBP 91.5 million in 2013 when it started an aggressive international expansion, from a loss of 34.4 million the year before.
The cuts come several months after the London-based company embarked on a major expansion of its services which will offer a fixed-rate calling plan for business travellers in 66 countries. Truphone received over GBP 300 million in investment over its eight years in business, excluding the latest round of financing. In early, 2013, it received GBP 75 million from Abramov, making him major owner of the company. He was joined by fellow billionaire, former Evraz business partner and current Chelsea football club owner Roman Abramovich.
