Zoom2u Technologies Limited, an innovative delivery platform and Software as a Service (SaaS) business, commences trading on the ASX, following the completion of its Initial Public Offer.
The IPO was supported by institutional, professional, and retail investors.
The IPO raised $8 million and was quickly over-subscribed and Zoom2u is projected to have a market capitalisation of $34.7 million at the time of listing at the Offer price.
Zoom2u Technologies’ IPO oversubscribed
Zoom2u was founded in 2014 by Steve Orenstein and now operates Zoom2u and Locate2u.
Zoom2u CEO Steve Orenstein said, “We’ve been delighted by the response the IPO has received from institutional, professional and retail investors which led to a significant level of demand, which was validation of the Company’s performance to date and growth strategy.”
“We would like to thank the customers and drivers who have supported our products.”
“We focus on investing for an outstanding customer experience and explore ways to consistently improve through innovation, savvy technology and robust expansion plans.”
“Zoom2u’s vision is to be the leader in last mile delivery both in Australia and globally.”
“The first two months of FY22 have started strongly with lockdowns in New South Wales and Victoria supporting growth in revenue, deliveries and Gross Merchandise Value (GMV).”
“The Company will continue to drive growth and raise the expectations for the sector, delivering continuous operational performance for shareholders in FY22 and beyond.”
Zoom2u experiencing exponential growth
The company’s Zoom2u platform provides an Australia-wide marketplace connecting customers to a network of local drivers for fast deliveries.
Zoom2u has processed over 2 million deliveries and is positioned to benefit from the expanding delivery service market in Australia, valued at approximately $5.6 billion in FY20.
The sector is expected to undergo further growth driven by increasing demands of the e-commerce sector, and outsourcing of delivery services.
Zoom2u has a large and diverse customer base of nearly 70,000 individuals, SMEs, and enterprise customers across multiple industries, connected to over 8,600 drivers.
Enterprise customers, contributing over $10,000 in annual GMV have grown from 9% in FY15 to 57% in FY21, with customers including Nespresso, DHL, and Pact Group.
Zoom2u is SaaS technology product and with Locate2u it enables businesses to manage bookings, optimise routes, track delivery teams and share live locations with their customers.
Locate2u operates in the global delivery management software market, which was estimated at $6.9 billion in 2018 and is forecast to grow to $13.8 billion in 2026 at a CAGR of 9.3%.
Market growth is driven by the increased automation of delivery management such as vehicle scheduling and route planning plus the drive to greater efficiency in delivery operations.
Locate2u helps customers who use their own vehicles as it tracks their fleets live.
Zoom2u is disrupting last mile delivery
The software was launched in late 2020 and as at 30 June 2021, and customers include couriers, retailers, and B2B businesses in Australia and offshore, with the company planning to expand operations into additional markets and offer multi language support.
Between FY15 and FY21 the Company achieved revenue CAGR of 71% and delivered growth in key metrics such as a 36% increase in FY21 deliveries and a 19% increase in GMV.
In FY21 Zoom2u raised revenue of $2.8 million, a 23% increase from $2.3 million in FY20.
The pandemic’s impact on adoption of e-commerce has accelerated the take up of Zoom2u’s products with customers expecting faster, accurate delivery times and a platform for growth.
Zoom2u will invest in sales and marketing, M&A opportunities and product development on pending integrations with third party applications such as Shopify, Square and WooCommerce.
These integrations and the changes in online consumer behaviour should provide the Company with significant new customers and efficiently accelerate growth.