Retail software developer Vend has raised $13 million in capital, including a significant investment from Wellington fund manager Movac.
Movac partner Mark Stuart will join the Vend board and other investors that participated including existing shareholders Square Peg Capital, Sam Morgan’s Jasmine Investments and Aspiring Asset Management.
Companies Office records say Vend issued 3.2 million shares yesterday, taking its total to 34 million. If this relates to the $13 million raise, the records imply Vend values itself at roughly $138 million. A Vend spokeswoman says the company doesn't comment on its valuation.
Vend says the money will be used to continue its expansion and product development. The company says it is well established in Australia and the US and has recently increased its UK staff to 20 with a new office in East London.
Chief executive Alex Fala is coy on the financial details of the raise but tells NBR Radio’s Grant Walker that Vend’s software is now in 20,000 stores globally and employs 200 staff.
Asked if the company will do initial public offering in the near future, Mr Fala says he’s not sure but the raise puts Vend in a strong position to do so.
“Right now we’re just focused on building a really big and successful business, that’s what this raise will allow us to continue to do,” says Mr Fala, who was appointed as CEO in June.
“We’ve built a quality and sustainable business. We could be profitable very quickly if we decided to slow our growth. This was money we chose to raise to help fuel our growth but even with that money in the bank we’re going to continue to retain our discipline and efficiency.”
The “vast majority” of Vend’s revenue comes from offshore, he says.
In 2017, Vend will focus on bringing on more global partners (it already has Xero, Square, Apple and PayPal), continue product development and invest in sales and marketing.
Movac’s fourth fund raised $105 million in November. Mr Stuart says the fund is looking is looking for “companies that have a strong team in place to grow the business, and the ambition and ability to scale to $100 million-plus in revenue. Vend ticks all the boxes.”
Square Peg Capital is founded by Vend chairman Barry Brott.
In August 2015, NBR reported Vend raised $12 million but also cut local staff numbers a couple of months earlier.
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