GETSWIFT CLOSES MASSIVE $75 MILLION RAISE
11 December 2017, Written by David Simmons
AUSTRALIAN logistics company GetSwift (ASX: GSW) has closed one of the biggest tech raises in 2017, securing an oversubscribed placement of $75 million.
The latest capital raise includes strong support from existing investors, as well as new Australian and American institutional investors.
The $75 million of funds will be used to execute on existing deals, expand GetSwift's global reach, and continue its growth into 2018.
Executive Chairman Bane Hunter says the deal solidifies 2017 as an incredible year for the listed tech logistics group.
"This round of funding caps off an incredible year for GetSwift," says Hunter.
"We've sealed agreements with some of the world's largest companies, and shown that having the right product, people and commercial outcomes are the key drivers for growth."
This cash injection follows the group's strategic deal with online marketplace Amazon announced last week, and a full year of important deals for the company.
A highlight for the group in 2017 was when it secured a multi-year agreement with Yum! Brands, the fortune 500 parent company behind KFC, Pizza Hut, Taco Bell and Wing Street.
In Australia, the company signed an exclusive multi-year agreement with Commonwealth Bank to integrate GetSwift technology into the bank's systems.
Following a raft of major deals announced in the late half of 2017, the company has not yet provided an announcement on the group's revenue.
"To disclose our revenue before [our next reporting interval] would be pinning down a rapidly moving figure and would ultimately be a disservice to the company and to our shareholders," says Hunter.
"For a rough indication, we would ask onlookers to consider our business model, the global scale of our deals and the total number of deliveries we expect each one will yield."
Following today's announcement, shares in GetSwift are down 2.5 per cent to $3.90 per share at 12.20pm AEDT.
Business News Australia
Author: David Simmons