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Marketplacer kicks IPO down the road with fresh $38m funding

Jessica SierJournalist

Dec 6, 2021 – 3.00pm

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The founder and chief executive of online marketplace developer Marketplacer says its long-mooted initial public offering is still on the agenda, despite banking a fresh $38 million funding round to keep it private longer.

The company had been expected to go public after its last funding round late last year, but never pulled the trigger and its fresh funding will be used to help US expansion ahead of a likely IPO next year.

Jason Wyatt CEO of Marketplacer that has just raised $38 million to double down on US expansion. Eamon Gallagher

The Melbourne-based company, which counts the likes of Woolworths, Myer and Surfstitch as customers, has tripled growth on its platform this year thanks to the pandemic-driven digitisation surge among established retailers.

The platform enables businesses to build marketplaces, letting them sell more goods without having to stock them.

Marketplacer had planned an IPO at the end of last year, raising $20 million in a pre-IPO funding round, but remained private with founder and chief executive Jason Wyatt saying there were more opportunities to build the company’s enterprise customer base privately.

“We’re definitely geared up for an IPO next year when the timing is right,” said Mr Wyatt, who remains a major shareholder.

“But we’ve just been knocking off these big, iconic brands that are saying, ‘we no longer have to stock it, we no longer have to ship it, but we can definitely sell it.’”

To date, Marketplacer has raised $85 million and this round has added Fifth Estate, Washington H Soul Patterson and Wunala Capital to its list of investors that already includes Acorn Capital, Ellerston Capital, Endeavor Asset Management, Lennox Capital Partners, Mirrabooka, OC Funds, Salesforce Ventures and SG Hiscock.

Marketplacer also launched in the US last February and Mr Wyatt said the fresh $38 million is going to turbocharge that expansion.

“The plan is to just keep developing ways to make it easier for businesses to sell things they don’t own,” he said, adding there was very little difference between US and Australian retailers.

Mr Wyatt said marketplace strategies were the next biggest growth curve for established retailers, who have moved through a phase of e-commerce growth and have adopted omnichannel strategies, where they market themselves and meet consumers wherever they happen to be.

“Using marketplaces and connecting suppliers directly to customers through the brand means there isn’t really a limit on how big these brands can grow,” Mr Wyatt said.

Marketplacer has built more than 100 marketplaces since launching in 2017.

David Keelan, portfolio manager at Ellerston Capital, which participated in the funding round, said he was drawn by Marketplacer’s blue-chip customer base and ambitious expansion strategy.

“Marketplacer has earned a stellar reputation for its technology platform, customer experience and double-down focus on being 10 steps ahead of market requirements,” Mr Keelan said.

“The Marketplacer team has made great strides in the marketplace economy and we look forward to being part of the Marketplacer success story as it expands its scope and enters international markets.”

As a software-as-a-service player, Marketplacer has set up partnerships with the likes of Salesforce, Adobe and Accenture to power the scaling ambitions of its marketplaces.

Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com