Huljich loans Pushpay $4 million to fund US growth plans
By Suze Metherell
March 16 (BusinessDesk) - Pushpay Holdings, the NZAX-listed mobile payment app developer, has secured a $4 million funding line from cornerstone shareholder the Huljich family as it chases earnings growth in the US.
Christopher & Banks Private Equity V, an investment vehicle for the Huljich family, have loaned the Auckland and Redmond-based company the cash on "arm's length commercial terms" until June next year, Pushpay said in a statement. The standby funding will be used to fund its US growth plans, where it's targeting religious and philanthropic groups.
Last year the mobile payment app developer moved its executive, sales and marketing teams to the US to further its push into the market. In November, Pushpay said it widened its loss to $2.7 million in the six months ended Sept. 30, from $568,000 in the same period a year earlier. Sales climbed to $1.6 million from $90,000, while operating expenses rose to $4.5 million, from $661,000.
In January, Christopher Huljich, the sole director of Christopher & Banks, tapped Peter Huljich as his alternative non-executive director to the mobile payment app's board.
Pushpay listed on the small-cap market last August at $1 per share in a compliance listing, meaning it raised no funds from the float, and last traded at $3.60. In June, Pushpay raised $9 million in new equity among private investors, issuing shares at $1 each and valuing the company at $50 million. The capital raise was underwritten by Christopher and Banks.