Blippar, best-known for creating jazzy, interactive magazine covers for titles such as ShortList and the Radio Times, is an app which lets users scan objects they are interested in to learn more about them.
The company's founder and chief executive, Ambarish Mitra, had the idea for Blippar after sharing a joke with the company's co-founder Omar Tayeb, about the Queen coming to life out of a £20 note.
Stuart Watson, UK entrepreneur of the year programme leader, said: "Ambarish wowed the judges with his technology and his entrepreneurial spirit.
"This is an entrepreneur with an unwavering determination to succeed, who sees each triumph and failure as feedback to help drive the business forward.
"They were also impressed by his personal journey from teenage runaway in New Delhi, to a chief executive of a fast growth, high-tech multi-national, transforming interactions with consumers."
Mitra will now go on to represent the UK at EY’s world entrepreneur of the year in Monaco next June, competing with more than 50 other country winners for the global title.