Vend completes $13m capital raise

Vend chief executive Alex Fala

Vend CEO Alex Fala on raising $13 million

0
0:00 0:10

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.


10 · Got a question about this story? Leave it in Comments & Questions below.


This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

10 Comments & Questions

Commenter icon key: Subscriber Verified

Welcome aboard the Vend express Movac.

Reply
Share
  • 2
  • 0

They should have raised $20m. $13m doesn't go far enough these days. All those little tech companies raising $2m or $3m are usually back asking for money before too long.

Nevertheless, Vend deserves some plaudits for raising capital in a tough environment and this will be a real fillip for a company that looked like it spent the first half of 2016 adrift.

Reply
Share
  • 0
  • 0

NBR has reported Vend was valued around US $100m (nz $140m) in March 2014 when it raised US raising in ince then it looks like it has raised NZ $25m. That is NZ $165m verses NZ $138M reported above.
So not much joy for investors over the past few years. But well done on being able to keep raising in a tough market.

Reply
Share
  • 0
  • 0

The reported valuations are all media speculation calculated from dollars raised and changes at the companies office. Valuations are complicated when VC is involved and not really any of our business.
What we do know is existing VC are reinvesting and new VC is investing and revenue nearly doubled to ~$15m year. Looks like an exciting story and promising for NZ.

Reply
Share
  • 0
  • 0

VC is not reinvesting. The tax payer is and Movac is simply clipping fees. No one has any skin in this game

Reply
Share
  • 0
  • 0

Vend is also a big recipient of tax payer grants. For what I don't know. Looks like simple SAAS to me. Will they pay back the grants now? Doubt it

Reply
Share
  • 0
  • 0

Where is the $15m of revenue coming from - are you an insider?

I accept that VC investment is often complicated and taking the company office data etc is not always accurate, but my comment indicates that valuation seems to have declined in the last 3 years despite what you say are great results. The earlier valuation was in dream land in my view.

Even 9-10 times revenues $138m / $15m seems a little high, based on the market for SaaS businesses.

Reply
Share
  • 0
  • 0

Great news for NZ. Would have been awesome to allow some of their early customers into the round through a small allocation out to the public.

Reply
Share
  • 1
  • 0

If I'm correct this is straight tax payer money coming in via the super fund. As many other commentators call it, it's straight corporate welfare. The tax payer is spruiking the valuations. It's not right. Private business and wealth needs to fund these things. The tax payer gets nothing out of it. They would get better returns on rental properties (not right either)

I see Lance Wiggs is happy. That's maybe because he can now claim his investment value has risen based on this new money courtesy of the tax payer

There is a commentator on the NBR called Derek Stirling, if anyone has his number I would like to have a beer with him. Is he the only one that sees through these things?

This company has a revenue of 15m. That's all. It's makes huge losses and while it may become great it's not the place for tax payer money at this stage

Reply
Share
  • 0
  • 0

Geotank was working in the same office as Vend and managed miracle capital raising from the dead.

The better the company did the more the share price tanked.

Property is better than getting flogged by director sell offs.

Reply
Share
  • 1
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6972 0.0000 0.00%
AUD 0.9140 0.0000 0.00%
EUR 0.5947 0.0000 0.00%
GBP 0.5244 0.0000 0.00%
HKD 5.4587 0.0000 0.00%
JPY 78.6130 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1257.5 2.370 2017-12-15T00:
Oil Brent 62.6 -0.070 2017-12-15T00:
Oil Nymex 57.3 0.310 2017-12-15T00:
Silver Index 16.0 0.129 2017-12-15T00:

Indices

Symbol Open High Last %
NASDAQ 6871.6 6945.8 6856.5 1.17%
DJI 24585.7 24688.6 24508.7 0.58%