Serko gets $2 million extension to Callaghan grant

Wednesday 22 March 2017 01:46 PM

Serko gets $2 million extension to Callaghan grant

By Paul McBeth

March 22 (BusinessDesk) - Serko, the online travel booking firm looking to turn a profit next year, has been given an extension to its Callaghan Innovation grant to spend on research and development. 

The Auckland-based company can access up to a further $2 million over the next two years from the grant, adding to the $4.2 million, three-year R&D subsidy it was awarded in 2014. Serko said it will use the extra funding to develop predictive technology. The company spent $3.4 million on R&D in the six months ended Sept. 30, up 4 percent than a year earlier, while government grant income of $594,000 was down from $702,000. 

"We want to thank the New Zealand government for its continued support and are excited to be able to fast-track development in an area we already know is going to be revolutionary," chief executive Darrin Grafton said in a statement. 

Serko lifted first-half sales 10 percent to $7 million in the six months ended Sept. 30, narrowing its loss and affirming its pathway to breaking even in the first quarter of 2018. The company raised $9 million in late 2015 to help fund a marketing push and product launch and has since said it didn't need to raise more capital before breaking even. 

The shares were unchanged at 29 cents, and haven't budged from the start of the year. The stock was sold at $1.10 apiece in its 2014 initial public offering. 

(BusinessDesk receives funding from Callaghan Innovation to help cover the commercialisation of innovation.)

(BusinessDesk)

© Scoop Media