Kyckr, an Australian regulatory technology (RegTech) company, has raised AUD 8 million (almost $5.29 million) via a new share placement to institutional and sophisticated investors.
According to Tuesday's announcement, the new shares will be issued at a price of $0.08 per share. The company is also planning to draft a share repurchase plan for an additional AUD 2 million (around $1.32 million). This will allow the existing shareholders an opportunity to participate in raising at the same price as the institutional offer.
COVID-19 pushing financial companies to go digital
With the fresh capital, the regtech company is planning to grow its sales internationally, digitizing customer verification products.
Kyckr will also utilize the proceeds in expanding its enterprise sales team, thus building on enterprise sales growth and extending the network of global strategic partners.
The company believes that the demand for its products will rise globally as following the COVID-19 pandemic, financial platforms are focusing on going digital.
"The need for strengthened Know Your Customer practices for online business verification in the financial services sector is now more important than ever in the current COVID-19 environment," Ian Henderson, CEO at Kyckr, said. "Automated customer and business verification will continue to rapidly grow as we have experienced with our contract growth and record revenue in the last few months."
Kyckr recently launched Company Watch, an automated online monitoring service for enterprises to retain the most accurate customer information.
"Our strategy is focused on building our enterprise channel and partnership model, and the additional funds will be used to ensure Kyckr has the financial flexibility to pursue growth as the need for increased digitisation for KYC data increases, and will place us in a stronger financial position to take advantage of emerging opportunities ahead. We are grateful for the strong support from existing shareholders, and we are pleased to welcome new investors to the company," Henderson added.
