- Rentals specialist Rent.com.au (RNT) has tapped investors for $2.5 million through a private share placement as it works to accelerate its RentPay fintech service
- The company initially planned to raise $2 million, but CEO Greg Bader said the placement was well-oversubcribed
- Rent.com.au says it will use the funding boost to ramp up marketing for the RentPay service and the core Rent.com.au business
- Some of the funds will also go towards adding new features to the RentPay app and increasing its functionality
- Shares in Rent.com.au are up 20 per cent to 7.2 cents each
Rentals specialist Rent.com.au (RNT) has tapped investors for $2.5 million through a private share placement as it works to accelerate its recently-launched RentPay fintech service.
The company placed some 41.67 million shares at six cents each to raise the funds, a 1.6 per cent discount to the price the company shares traded prior to the announcement of the placement.
The company said it would use the new funds to ramp up marketing for the RentPay service and the core Rent.com.au business, as well as to add new features and functionality to the RentPay app.
The RentPay service allows users to stash rent money in a digital wallet, then plan and manage payments and set up automatic bank transfers into the RentPay app on pre-set paydays.
Rent.com.au CEO Greg Bader said the company initially planned to raise $2 million but, with the placement well oversubscribed, chose to pocket a little extra.
“To be supported by our larger existing shareholders is fantastic,” Mr Bader said.
Bolstered marketing
In June 2021, Rent.com.au appointed New York-based Hayley Parker as its general manager for marketing as the company looked to sign more users onto the RentPay platform.
Today, the company said it has spent several months working out some key marketing strategies. The funds raised from the $2.5 million placement will go towards implementing these strategies.
Some funds will also go towards general marketing for the core Rent.com.au rental portal, with an increased presence and brand awareness for the core business expected to drive more customers to RentPay.
The company said it was also working on new payment choices, improved customer flows and rewards systems for RentPay as part of its plans to accelerate the app’s development and add new features and functionality.
Shares in Rent.com.au were up 20 per cent to 7.2 cents each at 12:20 pm AEDT.