Photoways Secures $29 Million in Series A Funding
Photoways, Inc. the newly-created U.S. company that operates a leading European online digital photo lab, today announced that it has secured EUR24 million ($29 million) in Series A funding from Highland Capital Partners and Index Ventures. The financing will be used to expand Photoways’ global presence and develop additional products and services for instant online photos.
In conjunction with the funding, Fergal Mullen and Neil Rimer will join the Board of Directors. Additionally, to further support the company’s step toward global expansion, Pierre Chappaz, founder and CEO of Kelkoo, the highly successful European shopping engine acquired by Yahoo! last year and Laurent Amouyal, an experienced marketing executive who founded Catalina Marketing Europe and previously held senior positions with The Coca-Cola Company, will also join the board of Photoways, Inc.
Photoways was founded in 1999, by Michel de Guilhermier, with the idea of creating an online photo sharing and printing web site for the European market. Since its inception, the company has experienced significant growth, with more than 800,000 members and has already reached profitability. Photoways currently has operations in 15 countries and plans to expand its global footprint to additional markets in 2005. Photoways also operates a budget-priced, print-only service under its PixDiscount brand.
“Photoways’ dynamic growth and performance over the past five years is due in large part to the experience and entrepreneurial spirit of its management team,” said Fergal Mullen, a General Partner with Highland Capital Partners. “The direct and integrated production model, which Michel de Guilhermier and Martin Genot formulated for the company early on, now delivers solid competitive advantages in terms of costs, scalability and defensibility.”
“Photoways has taken a very direct path to success in the digital photo market, by satisfying consumers’ desire for better value, and more personalized, original products,” said Neil Rimer, a General Partner with Index Ventures. “Michel and Martin’s ‘just do it’ attitude to production, product development and customer service has positioned them to be the Pan-European leader in this space.”
“We feel privileged to have received funding from two leading, international venture firms in Highland Capital Partners and Index Ventures,” said Michel de Guilhermier, CEO of Photoways. “Our management team is excited about working with Pierre, Laurent, Fergal and Neil to leverage the tremendous knowledge, experience and global contacts to help make Photoways the leader in online photo services.”