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The financial services “buy now, pay later” company says it is on track for profitability.
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QuickFee raising to fund US growth
10 May 2022
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Sydney start-up QuickFee has completed a $4.0 million capital raising and just launched a $500,000 share purchase plan to fund its growth plans and “achieve profitability”.
The ASX listed company offers a “buy now, pay later” facility to accounting and law firms that allows their clients to spread fee repayments.
The successful raising follows a strong post-COVID recovery in the US, which now accounts for the bulk of its revenue.
“I am delighted by the progress QuickFee has made in accelerating our path to profitability,” managing director Eric Lookhoff said. “Our capacity for continued growth in the US professional services space has attracted the support and partnership of world-class payments organisations.”
“I am grateful for their participation and that of our retail and institutional shareholders, which ensure that QuickFee is fully-funded as we continue to execute on our growth strategies and achieve near term profitability.”
Global payment processing company Payroc was among the participants in the raising while the share placement is open to eligible shareholders in Australia and New Zealand.
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Payroc chief executive James Oberman said participation in the capital raising cemented a successful partnership.
“Our relationship with QuickFee has been a key source of growth for Payroc since 2016,” he said. “Joining the register as a shareholder just made sense as an investment, and we look forward to our continued partnership into the future.”
ASX-listed QuickFee shares started the year at $0.17 but have fallen more than 40 per cent and last traded at the placement price of $0.10.
The company, which began in 2009, expanded into the US in 2016 and targets accounting practices with more than US$1 million in revenue. Clients include 30 per cent of the US top 400 CPA firms.
It has also been taken up widely in Australia, with around 300 customers, and diversified its offering into an interest-free facility and an e-invoicing tool.
Its latest business update, for the third quarter of FY2022, showed record merchant numbers and while its Buy Now and Pay Later financing products grew 44 per cent and 33 per cent respectively in the US.
“The continued shift to online payments and the growing demand for more flexible payment options are continuing to provide additional tailwinds for the business, which will help to drive further scale and bring forward the operating leverage benefits in the QuickFee business model,” Mr Lookhoff said.
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