Street Talk

StrongRoom AI’s latest financials herald big losses for its investors

Sarah Thompson, Kanika Sood and Emma Rapaport

Apr 7, 2025 – 4.37pm

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Collapsed pharmacy software start-up StrongRoom AI’s updated financials prepared amid a firesale triggered by fraud allegations show it is days away from running out of cash, and had only $5.8 million in net assets at March 31 after being valued at $70 million earlier in the month.

Street Talk can reveal a revised financial update sent last week to StrongRoom’s investors by administrator HLB Mann Judd says the start-up held $1.4 million across various bank accounts at March 31, down from about $2.65 million the month prior. Sources said this has since fallen to less than a million, despite the company announcing a $17 million raising weeks prior. Non-binding bids were due on Monday, with final offers due Friday.

Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones.

Kanika Sood is a journalist based in Sydney who writes for the Street Talk column.

Emma Rapaport is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review.