Technology platform Kaddy (ASX:KDY) reports it has developed a strategic partnership with strategic investor Triton Growth Management to provide up to $7 million via a convertible note for working capital and to accelerate the growth of the Kaddy Platform.
The company says the Kaddy platform provides beverage suppliers an end-to-end supply chain solution that allows them to connect with buyers, simplify operations, streamline payments and fulfil trade orders.
Under the terms of the note, $700,000 has already been received, and $1.3 million is to be received by the end of January 2023. An additional $5 million of funding is also available to Kaddy subject to mutual agreement from both parties.
Immediate funding to the company under the note totals $1.674 million, of which $700,000 is from Triton, and $974,000 is from existing shareholders and senior management. A further $250,000 from Kaddy’s directors is subject to shareholder approval which will be sought in due course.
“I am tremendously optimistic about the future of Kaddy and our ability to deliver the previously announced savings initiatives”
Kaddy Chief Executive Officer Steve Voorma says: “Having secured a very significant staged funding runway, I am tremendously optimistic about the future of Kaddy and our ability to deliver the previously announced savings initiatives operationally, allowing the company to build a sustainable business where we see Kaddy Fulfillment and Kaddy Marketplace working together, maximising our service offering to customers.
I am pleased to say that our exit from consumer Fulfilment services is also progressing to schedule as part of our new business-to-business (B2B) only focused strategy, with $2.1 million of the $5.7 million in committed annualised cost savings having already been achieved.”
Kaddy reports the additional working capital will allow the company to take advantage of the ‘significant investment it has made over the last year consolidating the 4 ‘legacy’ businesses developed and acquired over the last 3 years into 1 platform.
This funding will also provide resources to allow the company to execute on its strategy to reposition the fulfilment side of the business as a pure-play B2B focused warehousing and logistics service provider for the beverages industry.
The company also states the funding extends Kaddy’s cash runway and helps bridge the gap to when the company expects the synergies and savings of $5.7 million per annum to start being released on a ‘meaningful’ basis later this financial year.
Kaddy is an ASX-listed technology company that operates Kaddy, which provides beverage suppliers and end-to-end supply chain solutions that allows users to connect with buyers, simplify operations, streamline payments and fulfil trade orders.
The Kaddy Platform consists of 3 divisions including Kaddy Marketplace, Kaddy Fulfilment and Kaddy Community.
The company plans to solidify its presence in Australasia before expanding the platform into other key markets such as the UK, Europe, the US, Canada and Asia.