IoT giant Thinxtra raises $5m in preparation for its IPO

A company which has developed the commercial grade equivalent of Apple’s Find My has raised capital ahead of an IPO.

Thinxtra chief executive Nicholas Lambrou.

An Australian Internet of Things (IoT) company which has developed the commercial grade equivalent of Apple’s Find My for beer kegs and food storage bins has raised $5m in pre-IPO funding.

Thinxtra, which counts Coles, Qantas, CouriersPlease, Optus, Loscam and Konvoy as customers, use its IoT devices to provide insights on food temperatures, location of stock and for any damage in transit.

The $5m round was led by Blue Ocean Equities with participation from Regal Funds Management.

Chief executive Nicholas Lambrou said Thinxtra would use the money to develop new capabilities in the areas of energy conservation, the growing indoor air quality market and supply chain resilience.

It would also be used to expand the company’s footprint in Australia, New Zealand, Hong Kong and Macau.

Mr Lambrou was confident Thinxtra could successfully list on the ASX and avoid some of the downturn seen among other tech companies over the past few years.

“The number of funding rounds and IPOs has significantly dropped across the country. And while certain industries are certainly seeing success, the majority are adjusting their plans in line with the current economic climate,” he said.

“We are certainly seeing a very strong growth (and) our sales orders are up around 123 per cent year on year. It certainly gives our board and our investors the confidence that we’re executing on the strategy and executing on it quite well.”

Thinxtra's IoT sensor on a beer keg can detect where it is located, its temperature and if it has fallen over.

Mr Lambrou compares the use of Thinxtra’s IoT technology with having a sensor on a BBQ gas bottle which tells the user when the gas is low, where it’s located and how much had been used each time the BBQ is turned on.

Asked if the company had delivered that exact product, he said Thinxtra had but on a commercial scale.

Blue Ocean Equities executive director Peter Gray said the firm was confident IoT would grow globally over the next few years.

“The IoT industry has a positive long-term outlook both internationally and locally, with among the most predictable growth scenarios for investors interested in recurring revenue business models,” he said.

“Thinxtra is a major player in this space in Australasia with a variety of attractive product and service solutions in current use and rollout. This is the result of a highly experienced board and management team which deliver proven technologies as reflected by its strong customer base and international presence.”

Another investor, Regal Funds Management chief executive Phil King, said the business’s potential to grow and its revenue stream made it very attractive to investors.

“We are attracted to the positive macro tailwinds powering the Massive IoT sector worldwide this decade and in Thinxtra for its leading marketplace solutions in the significant Asian markets of Hong Kong and Macau, alongside Australia and New Zealand,” he said.

“These in turn are continually generating strong annual recurring revenue streams that investors highly value.”