- DW8 (DW8) secures up to $10 million in funding from Singapore-based Triton Growth Management
- The investment is in the form of a convertible note with a two-year term and a 12 per cent interest rate per annum
- DW8 will use the money to scale its Kaddy tech platform in Australia and assess expansion opportunities into other major beverage markets
- DW8 shares were up 11.11 per cent to trade at 2 cents at 12:26 pm AEST.
DW8 (DW8) has secured up to $10 million in funding from Singapore-based Triton Growth Management.
The investment will be in the form of a convertible note under which $5 million will be drawn down at completion. A further $5 million will then be made available to DW8 under the same terms and if both parties agree.
The convertible note has a two-year term, expiring on July 1, 2024, and has a 12 per cent interest rate per annum.
DW8 said it planned to use the funds for working capital and to pursue opportunities to accelerate the growth of its Kaddy business, which it acquired in October last year.
The Kaddy technology platform provides beverage suppliers an end-to-end supply chain solution, allowing them to connect with buyers, simplify operations, streamline payments and fulfil trade and consumer orders.
Triton Growth’s managing director, Richard Smith, said DW8 had created a “very valuable” platform that he believed could be applied to every major beverage market in the world.
“Our thesis is that wholesale liquor distribution is a category that simply has to move to platform. Kaddy is a unique platform with proven product market fit, multiple revenue streams and a large addressable market that is ready to scale,” Mr Smith said.
Over the last six months, DW8 has focused on consolidating its four legacy businesses onto one platform, being the Kaddy platform, via its Project One plan.
The company said the investment from Triton “bridges the gap” to when it expects to begin seeing at least $4 million in savings per annum.
DW8 is also working through other savings initiatives which it expects to announce in its June quarterly report. These initiatives, together with the new rate card that became effective on July 1 and underlying growth, are expected to push Kaddy Fulfilment as a stand-alone division into profitability in FY23.
DW8 CEO Dean Taylor said he was “super excited” to have partnered with Triton Growth.
“Not only have they recognised our potential to create a significant national beverage marketplace here in Australia, but also the ability to create something significantly larger by taking the unique platform that we have developed into other major markets, which has been part of our long-term vision and will mark an important step in our journey,” Mr Taylor said.
Completion of the initial $5 million is expected to occur on August 4.
DW8 shares were up 11.11 per cent to trade at 2 cents at 12:26 pm AEST.