Tech Top 5: A US$271.4m BNPL funding deal, and US markets prove lucrative for ASX software plays
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Here are the biggest tech winners in early trade, Thursday October 7.
BNPL player Openpay has scored a US$271.4 million asset-backed revolving debt facility with Goldman Sachs today – plus mezzanine financing by Atalaya Capital Management.
The company’s share price was up 9.8% on the news.
The warehouse facility establishes local funding in line with OPY’s plans to rapidly expand in the US, which is the worlds largest BNPL market.
“We are thrilled to work with Goldman Sachs and Atalaya, who will now deliver the funding to enable our growth in the US at scale,” Openpay’s US CEO and global chief strategy officer Brian Shniderman said.
“We will begin distributing BNPL in large volumes through major ecosystem partnerships like payments processors, and merchant aggregators requiring significant funding.”
“This is precisely what we shared as our plan with investors,” Shniderman said, flagging that it’s also part of OPY’s “six pillar strategy”.
“This facility is now set to grow our US business at a greater scale for the global company through this exciting US launch going live this month.”
The company says the financing comes at attractive financial terms which will enable the business to offer financing to US consumers at affordable rates.
Goldman Sachs will also receive warrants up to a value of A$1.33 million, which represents around 0.73% of the current issued share capital of Openpay on a fully diluted basis.
Staying in the US, software player Prophecy International jumped a whopping 36.20% today off the back of news it had signed health insurer Humana Inc. (NYSE:HUM) for a three year term.
The deal has a minimum commitment of $1.784 million in annualised recurring revenue and total contract value of $5.518 million over the initial term.
It marks accelerating momentum in the company’s eMite business – a real time and historical customer experience and call centre analytics platform.
Last year eMite was sold in more than 14 countries to customers in the Genesys, Amazon and Avaya ecosystems, and the product now has ARR exceeding $10 million.
“Given Humana’s standing as one of the strongest participants in the US healthcare market, we are excited by the opportunity to strengthen Humana’s ability to provide high-quality, whole-person healthcare and support superior outcomes for patients across all of its lines of business,” Prophecy International CEO Brad Thomas, said.
“A contract of this nature is material to Prophecy as it, along with other recently-signed eMite customers, boost the annualised recurring revenue for the eMite business to more than $10 million.”
Credential verification platform CV Check also jumped today – up a tidy 15.15% after announcing it received record revenue of $6.3 million in the September quarter – up 85.4% up on the previous corresponding period.
Consolidated revenue includes $0.6m (9.4%) committed (SaaS) revenue in the form of licence and consulting fees, also a marginal improvement on the preceding quarter.
“This is yet another great result from the strong core business,” CEO Michael Ivanchenko said.
“Work is progressing well on consolidating technology features to reduce cost to serve and open opportunities to improve quality revenue.”
“I look forward to sharing plans for product development and feature enhancement in coming months.”
Cybersecurity and drone player Mobilicom was up 7.14% today after it successfully fulfilled its existing $2.3 million contract with an unnamed global drone supplier, delivering the final instalment of more than 200 Ground Controller Stations (GCS) valued at $470,000.
The tactical mobile GCS will be integrated within the customer’s range of tactical drones and small fixed-wing unmanned aerial vehicles (UAV).
The customer is one of the largest suppliers of drones, small unmanned aerial vehicles (sUAV) and robotics outside of the USA with its solutions used globally within the defence, security and commercial sectors, Mobilicom said.
Mobilicom CEO Oren Elkayam said the company has leveraged its Asia-Pacific manufacturing capability to fulfil contract deliveries milestones despite global supply chain challenges.
“With annual revenues of more than $3.6 billion, this customer aligns with our long-term growth strategy of hardware sales and recurring licensing revenue, by targeting large drone and robotics manufacturers that have the potential to scale,” he said.
“Our growing end-to-end offering of smart solutions and cybersecurity for drones, robotics and autonomy platforms, including our industry-leading cybersecurity software, has enabled us to broaden our offerings to include new products and other smart solution components. “This end-to-end strategy is a key differentiator for Mobilicom.”
Environmental tech provider Envirosuite was up 6.25% today after announcing its had a strong start to FY22 with total ARR increasing to $48.6 million with the addition of $1.7 million in new ARR sales for Q1 – as part of the $4.1 million in total sales for the quarter.
This represents a lift of 42% on the previous corresponding period.
The company said that it’s seeing strong growth in North America off the back of the investment from the Biden Administration in climate action and infrastructure, as well as continued customer expansion and increased media coverage of Envirosuite projects with growing community sentiment.
“It has been an important sales quarter where we signed contracts across our EVS Water portfolio, expanded our presence and brand awareness within the US with strong media coverage which has translated to an increase in high quality inbound leads, advanced commercial partnership discussions, and continued to demonstrate value to our existing customers with anticipated expansions in Q2,” Envirosuite CEO Jason Cooper said.
“These are important steps forward as we continue to drive focus and discipline within the organisation to accelerate growth for the full financial year.
We continue to scale up our sales, product, marketing, and support capabilities to firmly establish Envirosuite as a leader in environmental intelligence and within the global environmental technology landscape.”