Online platform operator Aumake announces that it has successfully completed a capital raising of $7 million. Aumake uses its online platform for connecting Asian influencers with authentic and high quality brands in Australian and New Zealand.
Aumake says the funds will be allocated to accelerating the development of its social e-commerce marketplace. This includes the development of an extensive technology buildout to integrate ‘popular’ marketing features like group buying and short-form video capabilities.
Details of Aumake’s capital raising
Commenting on the capital raising, Aumake said it has successfully secured binding commitments of $7 million (before costs) through a placement of 116,666,667 new shares at a share price of $0.06 per share. This is inclusive of a 1:2 free attaching option to new and existing sophisticated and institutional investors.
The platform operator says tranche 1 of the placement (101,750,000 shares) will be issued during the week beginning 28th December 2020. Tranche 2 (14,916,667 shares) including the commitment of the directors to be issued subject to shareholder approval.
Keong Chan, Executive Chairman of Aumake says the strong support they’ve received form existing and new investors reflects significant long-term growth opportunities their social e-commerce platform offers for businesses. The placement was led by Steven Hu and co-investors. Hu is a former partner of a Hong Kong-based VC firm. Chan welcomes his new shareholders to the company register, especially Steven Hu.
“Steven initially approached Aumake in October when the company outlined its intention of developing a social e-commerce marketplace for the ANZ market. Given his wealth of investment experience along with the rapid evolution of consumer tech in China, Steven Hu saw the substantial potential for its business to grow exponentially. Chan is delighted that Steven joined the register of Aumake and he looks forward to leveraging his network of co-investors and operators in the consumer technology industry in China.
More on Aumake raising money
Chan says this Placement will allow the company to fast-track its marketing and growth initiatives, drive substantial user uptake, increase sales growth as well as invest in technology. The company’s key technology developments will be focused on popular social e-commerce functionalities like short form video, group buying and gamification capabilities.
While its new platform is already producing a strong active new user growth and re-purchasing, the Placement backs the company’s commercial rollout which will significantly increase the platform’s visibility in China.
The funding will also enable them to invest in direct marketing campaigns to collaborate with new brands along with introducing profit-sharing models to bring home influencer interaction and sales conversion, says Chan.