Zoom2u (ASX:Z2U) gets listed on ASX

Highlights

  • Zoom2u was founded in 2014 by Steve Orenstein. It now operates two key businesses, Zoom2u and Locate2u.
  • The Company will have a market capitalisation of AU$34.7 million at the time of listing at the Offer price.
  • In FY21, Zoom2u has delivered revenue of AU$2.8 million, an increase of 23% from AU$2.3 million in FY20.

Zoom2u Technologies Limited (ASX:Z2U), a Software as a Service (SaaS) business, starts trading on the ASX today at 11.00 AM AEST, following the completion of its IPO.

The IPO received a firm support from investors, raising AU$8.0 million with Foster Stockbroking acting as Lead Manager to the IPO.

The Company will have a market capitalisation of AU$34.7 million at the time of listing at the Offer price.

About Zoom2u

The Company was founded in 2014 by CEO Steve Orenstein, and now operates two key businesses, Zoom2u and Locate2u.

                     

Why are ASX Stocks Resolute Mining, Zoom2u, Province Resources, Rhinomed in action today?

 

The Company’s Zoom2u Platform provides an Australia wide Marketplace connecting customers to a network of local drivers for fast deliveries. Since launching in 2014, Zoom2u has processed over 2 million deliveries.

Since inception in 2014, Zoom2u has completed over 2 million deliveries and each delivery typically generates fees of ~21% of GMV.

What is Locate2u?

Complementing Zoom2u is SaaS technology product, Locate2u. This enables businesses to manage bookings, optimise routes, track delivery teams, and share live locations with their customers.

Locate2u was designed to help customers who run their own fleet of drivers, using their own vehicles, track their fleets live. The software was launched in late 2020.

Company’s performance

Between FY15 and FY21, Zoom2u achieved revenue CAGR of 71% and delivered growth in key metrics such as a 36% increase in FY21 deliveries and a 19% increase in GMV. In FY21 Zoom2u delivered revenue of AU$2.8 million, an increase of 23% from AU$2.3 million in FY20.

Impact of COVID-19

There has been a positive impact of Covid-19 on the adoption of e-commerce. This has accelerated the take up of Zoom2u’s products.

Bottom Line

The Company looks well positioned to capitalise on the growth in the Australian delivery services market, which was valued at approximately AU$5.6 billion in FY2020 and is projected to witness strong growth in the future, particularly driven by the increase in e‑commerce and the increased outsourcing of delivery services.

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