This morning, ZipTel Limited (ASX:ZIP) announced that it has raised $5 million, that will be used to accelerate the acquisition and marketing activities around its ZipT product, a mobile based VOIP communication application that lets users SMS and make international calls from their mobile.
The money was raised via a share placement to domestic and international institutions, according to a statement submitted to the ASX. The placement of over 11.9 million ordinary shares was completed at $0.42 a share. According to a media release, there were a number of new local and international institutions that participated in the placement. This has increased the company cash reserves to around $8 million after costs of the issue are deducted. K2 Asset Management also participated in the raise and maintain its holding of 16.3 percent.
ZipTel will be using the money to put into play an aggressive marketing strategy to acquire users for the ZipT service, which the company boasts is consistent in providing ‘crystal clear voice quality’ even via bandwidths as little at 8kps and using up to 80 percent less data.
In July this year, the company told the Sydney Morning Herald that it would have 2 million subscribers to the ZipT service by September 2015.
In this morning’s media release, ZipTel’s Co-Founder and Executive Director, Keaton Wallace said, “We’re delighted to have received such strong support from institutional and sophisticated investors. This placement both validates our company strategy and strongly supports the development and roll out of the ZipT application and the ongoing growth of our AussieSim product.”
“Through our distribution deals in place with Mpire Media and Airloyal, the funds raised will allow us to aggressively acquire an initial subscriber base for the ZipT which will in turn lead to further organic growth in subscribers through word of mouth or virality. With the launch of the ZipT application next month, we are another step closer to realising our goal of bringing a superior mobile based calling application, that operates all over the world under all network conditions including low bandwidth environments.”
It should be noted that the ZipT service was originally intended to launch in September according to statements made by the founders at the time of the company’s reverse listing on the ASX in July. However, it appears that a new date of November 31st has now been set for the launch. Last month, the company launched a standalone website and initial marketing collateral for the new service, which combines all the great features users love from services like Skype, Viber and WhatsApp.
Potential users, though, are able to pre-subscribe to the service prior to launch on the website.
featured image: founders Bert Mondello and Keaton Wallace.