Novatti secures $10.2 million with binding commitments from investors

By Edil Corneille

Melbourne-based Novatti Group, a digital banking and payments company, has announced today the securement of $10.2 million capital, with binding commitments from institutional and sophisticated investors. The company has apprised that the investment will be used for its next growth phase.

Peter Cook, Managing Director, Novatti enunciated, “This capital raising will provide the funding for Novatti’s next growth phase and to capitalise on the shift towards increased digital banking and payments that has been seen through COVID-19. We strongly believe that the shift to a cashless society will accelerate going forward and, with Novatti already being fully digital, we are well placed to capitalise on this rapidly expanding market.”

The next phase is expected to continue with the recent expansion and strategic achievements of the company, including:

• Partnering with Alipay to integrate Novatti’s China-focused, cross-border payments platform, ChinaPayments, into Alipay’s app.
• Being chosen by global payments leader Marqeta as its partner to launch its prepaid card business in Australia.
• Launching the new Visa card issuing business after being awarded a Principal Issuer Licence by Visa Worldwide Pty Limited.
• Strong total quarterly revenue in March 2020 quarter witnessed, reaching $3 million for the first time, including record processing revenue of over $1.7 million.
• Successfully navigating the challenges of COVID-19, including integrating recent acquisition Emersion.

The capital raising will result in the unconditional placement of 40 million new fully paid ordinary shares at an issue price of $0.25 per new share. The placement was strongly supported by institutional investors and existing shareholders, including Managing Director, Peter Cook, and Non-Executive Chairman, Peter Pawlowitsch, who each subscribed for 400,000 new shares ($100,000), which is subject to shareholder approval.

Novatti will use the funds to increase business development resources, acquire new Visa card issuing programs, secure new strategic and global partnerships, and fast-tracking Novatti’s integration into other payment networks.