A local insurance technology firm has its eyes set on a Australian stock exchange listing, after completing a successful funding round.
File photo. Photo: 123RF
Auckland-based Javln has raised A$6.7 million ($NZ7.4m) in partnership with the Australian pre-initial public offering (IPO) fund manager Bombora Investment Management.
The raise included a $A4m ($NZ4.4m) private offer, which was revised up from $A3.25m ($NZ3.6m).
Javln was founded in 2011 and provides an end-to-end policy management software for insurance agents, brokers and underwriters which allows them to save time and money, while delivering a better customer experience.
Company chief executive Dale Smith told RNZ the capital injection would fuel the company's expansion deeper into Australia and potentially further afield.
"Australia is our largest commercial opportunity that we have at the moment and that money will go long a way to delivering on our growth aspirations."
The capital injection would be put towards boosting its staffing, which currently stood at 60, with staff based across Auckland, Hamilton and Australia.
He said the company was looking at a future ASX listing in 12 to 24 months' time, as opposed to floating its shares on the New Zealand Stock Exchange, because of Bombora's experience with taking companies public there.
"An Australian stock exchange listing would do a lot for our brand in the Australian market and we thank that is a real benefit."
Smith said Javln generated about $NZ10m in revenue and was currently breaking about even.
The deal was Bombora's first in New Zealand.
As part of the terms of the partnership, Bombora had appointed Kerry McIntosh as the new chair of Javln.
He said in a statement that the company was in good position to grow, as the insurance industry adopts modern, cloud-based software to improve efficiency, regulatory compliance and the customer experience.
"One of the key attractions for us was the quality of the management team led by founder and CEO Dale Smith, who is an experienced and successful serial entrepreneur," he said.
Bombora investment director Emily Mohan added that Javln also met its investment criteria because of its low customer churn and cash burn rate, as well as its growth potential in a defensive industry.