The now trans-Tasman direct-to-consumer investment platform Sharesies has embarked on another capital-raising round that values the four-year old company at over $400 million.
It is understood Sharesies is seeking $50 million in the latest capital top-up – the third or fourth in a series dating back to the firm’s launch in 2017 – with US private equity money expected to fund half of that.
According to sources familiar with the matter, the ‘pre-money’ figure touted to potential investors values the platform about $450 million compared to just $24 million in 2018 when TradeMe tipped in $4 million to buy a 16 per cent stake late in 2018.
TradeMe remains the single-largest equity-holder in Sharesies, owning just over 15 per cent of the company.
The most recent capital-raising effort follows a drive late last year that saw Sharesies bring in $25 million from both existing and new shareholders (notably, US venture capital firm, Amplo) to help fund its expansion into Australia.
Sharesies officially opened in Australia this April with marketing campaign going live at the end of August.
Late last month, the platform – which boasts over 400,000 users – was stung with a formal warning from the Financial Markets Authority (FMA) for breaches of anti-money laundering rules.
At last count, Sharesies reported about $1.5 billion on the platform accrued via fund investments or share-trades on the NZ, Australian and US markets – the latter two jurisdictions only recent additions to the service mix.
The company restructured its corporate operations last year to reflect the leap across the Tasman with several subsidiaries (including an Australian entity) housed under the Sharesies Group.
Early this August the firm also created a new subsidiary – Sharesies Investment Management – suggesting a leap into funds management could be on the cards.
A Sharesies spokesperson confirmed the capital-raise is underway. The company was founded by Leighton Roberts, Brooke Roberts and Sonya Williams.
Investor interest in direct-to-consumer platforms has spiked globally over the last year or two in a trend underscored by the listing of US commission-free broker, Robinhood, earlier in 2021.
Closer to home, the Australian US share-trading platform, Stake, raised A$40 million from two private equity firms to fund further growth. The Kiwi Wealth-owned Hatch, which offers a similar US stock-trading services as Stake (and Sharesies), has also been slated for potential sale.