Australian mobile payment provider and taxi services app ingogo today announced an additional $3.4 million in funding, valuing the business at over $25 million and taking the total capital raised by the company to $7.1million.
The new investment will allow ingogo to expand their innovative payment platform to thousands of taxi drivers across Australia as well as implement the system within new industries. The company is also planning to list on the ASX in 2014.
ingogo is an innovative mobile platform challenging incumbent taxi booking and payment players in Australia by providing a seamless end-to-end system that benefits both drivers and passengers. The company’s leading wireless payment terminal was launched with ANZ and Ingenico in October this year, and is one of the world’s first app-based payment platforms. The system won the CeBIT Future Payments Award in October and the HP Service Innovation Award in November this year.
A number of new and existing investors are participating in the current funding round including, the UBS Australian Small Companies Fund, the Wilbow Group and private investors from Asia and the United States of America. A prominent Melbourne family fund has also joined the register.
Founder and Managing Director Hamish Petrie said the funding injection will see the company pursue new opportunities both locally and internationally that will progress the company to a position where it could be listed on the ASX in the first half of 2014.
“This new round of investment will allow ingogo to deploy the highly successful ingogo mobile payment platform further across Australia and seek to provide a comprehensive suite of services for small merchants to accept payments through our platform,” Petrie said.
“The payment system solves a range of complex issues that also correspond to other mobile payment environments and given that taxis are one of the toughest payment spaces and we’ve cracked the market – our pilot group successfully processed several million dollars of payments last month – we see huge potential for the ingogo platform within new industries.
“We’re also confident this funding round will be the last we need to achieve positive operating cash flow.”
The ingogo payment platform now covers mobile wallet, EMV compliant Contactless and EFTPOS & magstripe payments as well as in-app transaction reporting, in-app bank account history, real time funds settlements and cash withdrawals from ATM’s across Australia.
The application allows customers to directly book a taxi with their smartphone and has also recently just released an SMS safety feature allowing passengers to send friends or family a free, personalised text, which includes the taxi’s details and the driver’s authority information.
The investment round will also see the ingogo team more than double in size to over 25 staff in the New Year as well as allow the start-up to pursue international licencing of the app.
The new investors join Brad Shofer Co-founder at MYOB, members of Sydney Angels and the Sydney Angels Sidecar Fund, Daniel Petre and Alison Deans (founders of successful early stage fund NETUS), Martin Dalgleish (Advisor to Ellerston Capital and previous Director of Seek and Carsales), Vikram Mehta (Pacific Venture Advisors – Silicon Valley) and ingogo founder, Hamish Petrie, who was the original founder of ticketing giant, Moshtix. ingogo was advised by financial experts Canaccord Genuity.