Sydney B2B hospitality supplies platform Marketboomer has raised $4.9 million in a round led by Salter Brothers Tech Fund.
It’s the second investment made by the Melbourne fund manager, which in February, stitched together the $74m takeover bid for small business lender Prospa to take it private after five years on the ASX.
Marketboomer is a mature business, founded in 1995, and operates in 23 countries, with over 10,000 monthly buyers on the platform and 20,000 suppliers.
Its cloud-based online procurement marketplace is used by platform for hotels globally, including IHG, Accor, Marriott, and Capella, as well as Qantas. The one-stop shop solution enables organisations to manage and automate purchasing, inventory and invoicing, with estimated savings on purchasing and operations of 7-12%.
The deal with see the Salter Brothers Tech Fund and co-investors take a 20% stake in Marketboomer. The capital is being deployed on resources in the Australian market, plus further expansion in South East Asia and UK, as well as delivering secondary capital for liquidity of existing investors.
The platform already services a large percentage of the existing portfolio of assets owned by the Salter Brothers Hotel Group with the partnership seeking to expand across the portfolio.
Marketboomer CEO Malcolm Jull said the investment also brings collaborative synergies to the table.
“Salter Brothers’ access to capital and international networks combined with Marketboomer’s leading edge capabilities will provide significant growth opportunities for the company and our team,” he said.
“The Salter Brothers team has a deep understanding of segment, competitors, suppliers and the hotel ecosystem, with access to economies of scale and revenue diversification through utilising their global network.”
Salter Brothers head of equities Gregg Taylor said Marketboomer has a loyal customer base.
“The business has achieved impressive historical organic revenue growth recently with less than 1% churn,” he said.
The growth capital we have provided will allow an acceleration of this growth rate and further global expansion through the additional sales and customer success team resources”.
The Salter Brothers Tech Fund is their 5th equities fund, targeting established and growing companies in the tech sector. The global funds manager has more than $3 billion in group assets under management.
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