AppsVillage smashes the cap raise ball right outa the park, raises $2.5m from institutions to accelerate growth
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Special Report: AppsVillage raises $2.5m in a heavily oversubscribed offer, as it looks to accelerate growth in 2020.
Investors have given AppsVillage Australia (ASX:APV) an early Christmas present after flooding into a heavily oversubscribed $2.5m capital raising.
The SaaS Fintech solution provider for small and medium businesses is beefing up its balance sheet ahead of 2020 in order to aggressively establish itself in the US.
AppsVillage will use all of the proceeds to continue its strong growth with an operational expansion into the US.
It plans to set up an office and launch an aggressive customer acquisition strategy, which it expects will increase its footprint and deliver material customer and revenue growth in the first half of the year.
AppsVillage also plans to further invest in marketing, analytics and customer support to boost its presence in existing high growth markets.
“Such strong interest received from a range of funds and institutional investors is very encouraging and we are now in an exceptionally strong position to deliver strong commercial growth and execute our growth strategy,” CEO and founder Max Bluvband said.
“We look forward to delivering accelerated operational and revenue growth in 2020 and beyond.”
The $2.5m, priced at a 25 per cent premium to the IPO price, was raised from institutional and sophisticated investors and led by Merchant Corporate Advisory.
The offer closed well oversubscribed with bids scaled back and was cornerstoned by an existing shareholder.
Strong support came from a broad range of domestic and international institutional and sophisticated investors, significantly broadening the geographical spread of the company’s share register.
The capital raise follows a stronger than expected ramp up in growth since the IPO in August, which saw the stock surge 45 per cent on debut.
It will also position AppsVillage well for the start of its strategic planning and integration of its micro-finance offering.
The company is on track to launch in the US in January 2020, and new important geographies include Australia.
In November, AppsVillage launched a pilot for a US microfinance program three weeks ahead of schedule. It is providing microfinance products valued between $US5,000 ($7,383) and $US50,000, and backed by its partner Seek Capital and Fundomate.AppsVillage partnered with US loan procurement company Seek Capital in October to match small businesses with micro-loans.