ReadiiTel return in 2022 for their second raise ahead of their intended IPO.
Overview
ReadiiTel returned in 2022 for their second equity crowdfunding raise with Equitise. This time around they were raising capital for their intended IPO in 2024.
The ReadiiTel team quickly surpassed their minimum target, with backing from several industry heavyweights, and closed the deal with over a huge $1,000,000+ raised!
Who is ReadiiTel?
ReadiiTel Pty Ltd is a 100% Australian-owned telecommunications and Managed Information Technology (IT) Services company providing their clients with a fast, flexible and reliable private network.
ReadiiTel focus on serving the small to medium businesses that have slipped through the cracks of the larger telcos. In order to achieve this, ReadiiTel‘s customer service model has been designed around the ability to individualise their solutions, giving their customers genuine one-to-one care with a personalised business team looking after small groups of customers to understand each customer, their needs and their business.
Why we liked ReadiiTel
Strong growth trajectory
ReadiiTel’s customer base increased from 40 to over 350 during a period of 3 years. Their sales revenue grew 4.8x from $539k FY19 to $2.6m FY22, with their sales revenue forecasted to increase over 100% in FY23 to $5.5m.
Differentiated approach to customer service
ReadiiTel utilizes a “pod” based customer service system to provide dedicated customer service support to clients. This approach has been a large contributor to ReadiiTel maintaining a customer retention rate of 99%.
Planned ASX Listing
Following their strong operational and financial performance, ReadiiTel was preparing for a listing on the ASX in 2024. The pre-IPO raise provides a tremendous opportunity for incoming investors backed by our strong track record in creating shareholder value.
Key Strategic Acquisitions
ReadiiTel targets strategic acquisitions across the sector that complement their competency and services. Before their 2022 Equitise raise they acquired 32 Byte, which specialises in IT services to the Dental sector.
Key Takeaways
Delivering Shareholder Value is Rewarded
It goes without saying, but delivering (and exceeding) key company targets builds credibility and trust amongst your shareholder base. Since their initial launch in 2019, ReadiiTel has built significant shareholder value in challenging trading conditions. When ReadiiTel launched their most recent raise, they could draw on that credibility they had built to secure follow-on and new investment. Equitise always advises companies to set clear, achievable goals, regularly communicate with shareholders and set fair and reasonable valuations. All of this builds credibility with investors and strengthens your position when you inevitably look to raise capital again in the future.