Online translations firm Straker raises a further $1 million for global acquisitions
Online translations platform Straker Translations has raised a further $1 million of equity from an existing Hong Kong investor, who paid a 20% premium to the last capital raise in September.
The new capital comes just three months after Auckland-based company raised $6 million to fund expansion plans, including $4 million from David Kirk's Bailador Investments, $1 million from Kong Hong-based Scobie Ward, and $1 million from several high-net worth New Zealand-based investors.
Straker founder Grant Straker says he hasn't yet spent the money from the September fundraising and didn't need the capital but the investor had "liked the progress we have made and wanted to be involved in our success so it was an opportunity to have a bit more in the tin at a fair price."
"November was a great month where we had more than $1 million in recognised revenue and were profitable for the month, so we don't have the burn rates of many other high-growth tech companies," he says.
The company is looking at buying rival translations companies in Canada and the UK where there's an opportunity to quickly acquire customers and add about 25% to profit margins by applying Straker's cloud-enabled technology that allows translations to be delivered easily and with speed.
Ranked among the top 100 translation companies in the world, Straker employs 55 people, has more than 10,000 customers in more than 20 countries, and earns 80% of its revenue outside Australasia.
The company has rejected the idea of listing on NZX's new NXT market because of concerns it may end up undervalued but is considering a future main board listing.
Mr Straker and his wife Merrin, who also works in the business, have retained a stake of about 35% in the company.
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