Jobs in 30 seconds: How ASX aspirant Spetz could change the consumer game
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An internationally established AI-powered digital marketplace linking consumers and service providers in seconds will soon hit the boards of the ASX.
Israeli-developed Spetz Tech is the owner of the Spetz app, an Uber-ish online platform launched in 2018 which dynamically connects consumers to nearby, rated service providers within 30 seconds of a request being put through.
Think Hipages (ASX:HPG) ($462 million market cap) or Airtasker (ASX:ART), ($398 million market cap), but with some points of difference which set it apart in a local market where there is clearly appetite for services of its ilk.
Firstly, Spetz will list in Australia with a well-established hold on its home market in Israel, product rollouts underway in the UK, having been launched in Australia (it already has more than 500 service providers on its books) and with an eye to targeting the US market.
Secondly, Spetz is sector agnostic – covering more than 400 service types from trades to professional services to healthcare.
Thirdly, the app comes with a patent-pending technology which allows it to provide customers with best-matched solutions within 30 seconds, prioritised by factors of availability, location, ratings and performance analysis.
Lastly, the company’s pay-per-lead revenue model delivers almost double the industry average return on investment for service providers in the trades market – an attractive option for those using it to find work.
The model saves time and hassle for consumers free of charge, and allows service providers to access new markets in exchange for a fixed fee paid on each job opportunity – a differentiating factor in this space which means those using the app to find work only pay for service calls they receive.
In a world where consumers are increasingly driven to app-based systems and motivated by online ratings, an established service like Spetz could have the potential to significantly disrupt the status quo.
Spetz Tech hopes to list in the early part of next calendar year, according to Bridge Street Capital Partners executive director Allen Chan, who’s firm is currently lead managing a pre-IPO financing raise by way of a convertible note placement.
The pre-IPO funds will be used to advance sales and marketing efforts in the UK and Australia in preparation for the IPO, with notes to convert at what is expected to be a 30% discount to the IPO price on listing.
“We see this as a really good opportunity from the investor’s point of view to participate in a global company, with a presence in Israel, in the UK, in Australia and knowing that an expansion into the US is on the horizon,” Chan said.
“If you look at peers like Hipages and Airtasker – the standard model has been to set up locally and then look to move offshore.
“Where the Spetz opportunity is different, is it’s a chance to go globally now. It’s not a start-up, it’s an international player coming to our shores.”
The company’s numbers already demonstrate the potential it brings to local shores. Aggregated across its Israeli, UK and Australian markets in July of this year, Spetz said it received a service call every two and a half minutes.
In the first half of 2020 in Israel, 70% of service calls came from repeat app users, who open on average 4.34 calls each.
The UK rollout has looked strong, with service calls growing 163% in Q3 of 2021 against the same corresponding period the previous year, despite the impacts of the COVID-19 pandemic. In Australia, calls increased 68% between Q2 and Q3 of this year.
Globally the app has been downloaded more than 250,000 times, with a Google Play rating of 4.7/5 and an Apple App Store rating of 4.6/5.
Impressive numbers indeed. And with plenty of room to grow.
This article was developed in collaboration with Bridge Street Capital, a Stockhead partner at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.