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Zoom2u Technologies makes strong debut on ASX after raising $8 million through IPO

“We would like to particularly thank the customers and drivers who have supported our products to date,” says CEO.

Zoom2u Technologies Ltd - Zoom2u Technologies makes strong debut on ASX after raising $8 million through IPO

Zoom2u Technologies Ltd (ASX:Z2U) started trading on the ASX today after raising $8 million through an initial public offer.

The company had a market capitalisation of $34.7 million at the time of listing at the offer price.

Shares opened at 35 cents and have traded in the range of 33 cents to 45 cents with more than 35 million changing hands.

The IPO, for which Foster Stockbroking acting as lead manager and raised $8 million by issuing shares $0.2 per share, received strong support from institutional, professional and retail investors.

“Delighted by response”

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 particularly thank the customers and drivers who have supported our products to date.

“As part of our growth strategy, we will continue to focus on investing to deliver an outstanding customer experience and explore ways to consistently improve.”

The company’s operations

Founded by its CEO, the company operates two key businesses, Zoom2u and Locate2u.

The Zoom2u Platform provides an Australia-wide marketplace connecting customers to a network of local drivers for fast deliveries.

Since its launch in 2014, the platform has processed more than 2 million deliveries and is well-positioned to capitalise on the rising Australian delivery services market, valued at $5.6 billion in FY20.

The sector is projected to witness growth, driven by the increase in e-commerce and the increased outsourcing of delivery services.

Zoom2u has a large and diverse customer base of nearly 70,000 individuals, SMEs and enterprise customers across numerous industries, connected to more than 8,600 drivers.

Growth opportunities

The company believes Zoom2u is well-positioned to capitalise on favourable tailwinds in the Australian and global delivery services market and continued e-commerce boom.

The company achieved a revenue CAGR of 71% between FY15 and FY21, with revenue of $2.8 million for the year ending June 30, 2021.

Orenstein said: “Zoom2u’s vision is to be the future leader in last-mile delivery both in Australia and across the globe.

“The first two months of FY22 have started strongly with lockdowns in New South Wales and Victoria supporting growth in revenue, deliveries and GMV.”

Locate2u

Complementing Zoom2u is a SaaS technology product, Locate2u, which 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%.

Growth in this market is driven by the increased automation of delivery management processes such as vehicle scheduling and route planning as well as the drive to greater efficiency in delivery operations.

Orenstein added: “We remain confident that the company will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.”

Quick facts: Zoom2u Technologies Ltd

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ASX:Z2U

Price: 0.67 AUD

Market Cap: $116.13 m

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