Marketboomer secures capital injection from Salter Brothers
As seen in the Australian Financial Review
Sarah Thompson, Kanika Sood and Emma Rapaport | Jun 30, 2024
Four months after putting Prospa investors out of their misery with a take-private, Melbourne fund manager Salter Brothers has ruled off an investment in Marketboomer, the software as a service business making hospitality procurement more hospitable.[https://www.afr.com/chanticleer/prospa-started-asx-life-with-a-bang-it-s-ending-with-a-whimper- 20240227-p5f885]
It is understood the Salter Brothers Tech Fund has tipped in $4.9 million in exchange for a 20 per cent stake in the proptech business, which was established almost 30-years ago in Sydney and has a presence across 23 countries.
Marketboomer’s platform allows hotels to source the hundreds of items they need every day from suppliers—all with paperless invoicing. It has over 10,000 active monthly users who can tap into some 20,000 suppliers on its network. The company claims to save customers 7-12 per cent on purchasing and operations.
Salter Brothers’ equities team originated and structured the transaction, while theTech Fund led the investment. The fresh funds would be funnelled into ramping up customer and sales resources in Australia; expansion into South East Asia and theUnited Kingdom; and to allow existing investors to take money off the table.
“The business has achieved impressive historical organic revenue growth recently with less than one per cent churn,” Salter’s head of equities, Gregg Taylor, said.
The new capital will allow an acceleration ofthis growth rate and further global expansion.”
Marketboomer’s customer base includes IHG, Accor, Marriott, Capella and Qantas,and hotels owned by the Salter Hotel Group.
“Salter Brothers’ team has a deep understanding of the hotel ecosystem … and access to economies of scale and revenue diversification through utilising their global network,” Malcolm Jull, chief executive of Marketboomer, said.
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