ASX-listed software company LiveTiles raises $11 million for expansion
ASX-listed software company LiveTiles has raised $11 million via a share placement to help expand its global reach, with over 61.1 million shares issued at 18 cents per share to local and international institutional investors.
The raise, led by Blue Ocean Equities, also saw a $400,000 investment from cofounders Karl Redenbach and Peter Nguyen-Brown, non-executive chairman Andrew Gray, and non-executive director Andy McKeon.
The company will also launch a Share Purchase Plan to raise up to $1 million.
Founded in Australia in 2014 and now headquartered in New York, LiveTiles allows users to integrate a variety of work tools into the one platform for seamless working. A Microsoft Partner, its products sit on Microsoft Office 365, Azure, and SharePoint.
“We’re very pleased to have received such strong support from new and existing shareholders, with the success of this raise providing strong validation of LiveTiles’ rapid growth to date and our plans for the future,” Redenbach said.
The company listed on the ASX through a reverse takeover of Western Australia mining company Modun Resources in 2015 following a $12 million capital raise.
According to an investor presentation at the end of the 2016/17 financial year the company announced it had 366 paying customers, having brought on 202 in the last 12 months.
With this, the company has grown its annualised subscription revenue by 293 percent to $4 million; according to data from Pacific Crest Securities, this is six times the subscription software industry average of 44 percent.
“This additional capital will allow us to accelerate investment in sales and marketing across all regions to take advantage of our very large addressable market and strong sales pipeline,” Redenbach said.
A significant part of that pipeline comes through the company’s reseller partners, among them Deloitte and PwC, who sell on LiveTiles products to their clients. LiveTiles has also worked with customers including Pepsico and European football governing body, UEFA.
To further grow, LivesTiles stated it will invest around $400,000 in a Microsoft marketing event taking place in September.
The company has also been bolstered by new additions to its leadership team; Doug Caywood, former Hewlett-Packard and Microsoft executive, and Kendra Bluhm, former Wal-Mart executive, joined the company to lead its US expansion. Facebook executive Andy McKeon also joined the board in March.
LiveTiles is the latest ASX-listed tech company to raise, with Nuheara, the company behind the noise-cancelling ‘IQbuds’ technology, late last month raising $9 million through an institutional placement to further its product development. The placement, led by Moelis Australia Advisory, will see 97.8 million new shares issued to investors at $0.092 each.
Image: Karl Redenbach. Source: Supplied.