Challenger telecoms provider CircleLoop is set to scale operations after securing a seed funding round of £1.5m.

The Lancashire-headquartered start-up is behind a cloud-based phone software that aims to bring new thinking to the telecoms industry.

The app-based system allows companies to consolidate their mobile and landline numbers into CircleLoop and use it on their existing devices, removing the need for expensive desk phones, line rentals and long-term contracts.

“We believe the telecoms market in the UK remains painful and unnecessarily expensive for many businesses," said co-founder Damian Hanson said.

“With CircleLoop, we believe we're developing something that will be truly different in the market. At last, there’s a telecoms challenger that will confront the ‘norms’ we have, until now, just had to accept."

CircleLoop, which has been in beta for most of 2017, is now taking on new customers having recently released its new desktop apps for Mac and Windows and launched improved UX in its iOS and Android mobile apps.

It is now planning to use its funding to accelerate its growth in the UK market, integrating CircleLoop into other complementary software-as-a-service (SaaS) products, starting with a core focus on CRM tools.

The business recently joined forces with eCommerce platform EKM - which hosts a fifth of Britain's online shops - to become its preferred telephony partner. Through its partnership with CircleLoop, it is now able to offer professional business telephony to its 25,000 customers.

Co-founder David Hague said: "Whilst we are just getting started with our vision for CircleLoop we believe we have already developed something which is being welcomed in the market and we look forward to working closely with our valued customers and partners to make CircleLoop a next generation telco."

CircleLoop has recently made a number of senior management hires, including Sean Ingham as technical manager, Matt Cowell as head of marketing and Ben Jemison as general manager.