The company is looking to raise up to a third of its $12 million round through the crowdfunding platform. The round should close in May and could be the largest equity crowdfunding round in Australia to date.
Hamish Petrie, Ingogo founder and CEO, commented:
“VentureCrowd has helped ingogo reach a range of investors we simply wouldn’t reach through traditional channels and we’re pleased to be working with them again on this funding round.”
Ingogo previously raised $1.2 million on the crowdfunding platform as part of its $9.3 million round late last year.
“The last raising through Venture Crowd would have placed it in the top 10 US crowdfunded raises. This one will take it up another level.”
VentureCrowd chief executive, Jeremy Colless, said the company had already proved the value of equity crowdfunding in past investment rounds, but the latest round proved the investment method is here to stay.
“We have already validated the value of equity crowdfunding in past investment rounds into high-growth companies such as Ingogo, but this latest round proves this investment method is here to stay.
“Sophisticated investors are immensely interested in gaining access to opportunities they wouldn’t see elsewhere. That possibilities would increase immensely if legislative changes enabled retail investors to take part as well.”
The VentureCrowd platform allows investors to get involved with as little as $1,000 investment, with no maximum.
Ingogo was founded in 2011 and the company started as a taxi booking and in-app payments model. It has evolved to become a full mobile payments business. Ingogo has some similarities to Uber, and this is perhaps something potential investors should watch. It will be interesting to see how they develop in tandem as Uber currently operate in Sydney and Melbourne.
Petrie continued saying the crowdfunding round allows the company to reach a range of investors it wouldn't reach through traditional channels:
“We want to deliver further results around multiple initiatives including our recent national taxi roll out, where we've added Brisbane, Perth and Adelaide to our Sydney and Melbourne Coverage. This capital will drive all these initiatives harder, has allowed us to upscale our growth and revenue forecasts and put us in a great position for an ASX listing. We will pick the right moment for that.”
For a company like Ingogo, the benefits of crowdfunding are derived in part from the marketing it provides for the company. The buzz around the crowdfunding campaign will help spread the word of the company’s taxi app and those who invest through the campaign will become brand ambassadors and are more likely to use the product as they have a vested interest in its success.
Back in December the Murray report highlighted the importance of crowdfunding as a method of funding businesses. The regulation surrounding crowdfunding in Australia still needs to be updated as the current regulatory system is impeding the development of crowdfunding. It is expected that new legislation may be introduced in second half of this year.