The Regal Emerging Companies Fund is focused on smaller, higher growth opportunities, with one aim being to identify the next exciting micro-cap business that can transition through to become a successful larger company. The success of these types of investments is often linked to predicting when a company with a unique business or market proposition has the wherewithal to execute on a nascent commercialisation strategy.
One such investment we have made is in the recently ASX listed technology company, GetSwift (GSW). GetSwift was listed in December 2016 and posted its maiden first half result on Tuesday, showing the successful commencement and monetisation of its cutting edge software solution that is already solving many of the legacy problems faced by companies who offer delivery of products to their customers.
Current workflows for most commercial delivery models involve clunky manual processes to accept orders, dispatch goods, and monitor and track deliveries. GetSwift’s solution is an elegant and simple SaaS-based software system that includes seamless order acceptance and dispatching, automatic and efficient order routing and fully visible and GPS-enabled driver tracking and delivery verification. GetSwift embodies a software solution that can enable companies to “dispatch like uber, track like dominos, and set routes like Fedex”, and with application to almost any market vertical that utilises a delivery model.
GetSwift has had some early and ominous commercial success, and is powering its customers to eat into the first-mover success of the likes of pizza franchisee Domino’s, who has successfully revolutionised the delivery of fast food in Australia and other key global markets. GetSwift has recently announced the signing of a number of Domino’s Australian competitors, namely fast growing US pizza franchise Little Caesars, as well as Australian based QSRH (owner of Red Rooster, Oporto and Chicken Treat) and The Fruit Box Group. GetSwift has also won some major customers in different market verticals, such as Lion Nathan and Mitre-10 Hardware, both of which utilise the GetSwift software platform for logistics and delivery process management.
GetSwift also recently announced that it had powered its 1 millionth delivery, with the Company's transaction based revenue model growing exponentially in recent months. GetSwift now offers its software solution for use in 57 countries, across 410 cities and 38 different industry verticals, and post raising $5m in December at IPO, is at what we consider to be an exciting inflection point, with aggressive monetisation likely in coming months.
It is rare for Australian investors to get the opportunity to invest in an IT business with global potential and apparently such strong commercial and strategic merit. We believe this could be the start of something big.
Julian is a Portfolio Manager in Regal’s Emerging Companies strategy, as well as marketing of Regal’s various equity long/short investment products. He is a CFA charter holder and holds a Graduate Diploma in Applied Finance.