- Online bookseller Booktopia launched a $10 million equity crowdfund, the largest so far in Australia.
- The company will tap into its large customer base to sell shares at $1 each.
- Booktopia’s revenue is $113.9 million.
Booktopia, an Australian-grown online bookstore, announced it is opening up shares for investors through platform Equitise in Australia’s largest equity crowd funding at $10 million.
The group, founded by Tony Nash, Steven Traurig and Simon Nash, plans to raise up to $10 million at $1 per share, with a minimum of $250, selling off 8.1% of the business.
Booktopia’s revenue has grown to $113.9 million in 2018 from $9.4 million in 2009.
The company will use the funds raised to expand automation, hold more stock and fund the liquidity of the business.
Booktopia has served in more than 5.2 million customers across Australia and New Zealand, a key reason behind the decision to raise funds through the crowd.
The company says it sells one item every 6.1 seconds and shipped more 4.7 million in the 12 months to June 2018, with 1.8 million repeat customers.
PwC’s Australian Entertainment & Media Outlook 2018-2022 shows that consumer and educational book total sales (from 2013 to 2017) increased from $1.806 billion to $1.933 billion, resulting in $127 million in extra sales over the five years.
Visits to Booktopia’s website has increased to 21 million in 2018 from five million in 2011.
“Booktopia started on a budget of $10 per day and it took three days to sell the first book,” says Tony Nash, Booktopia’s CEO.
“We have always said that our customers have been our investors because they bought books from us and we used those funds to re-invest in the business to grow further.
“It is exciting we can offer our customers the opportunity to actually own a piece of our future.”
Chris Gilbert, Founder of Equitise, says Booktopia is by far one of the most robust and successful self-made businesses he’s seen.
“With such a solid road map for continued growth and new opportunities in new markets and their recently launched book distribution business, this opportunity to invest I’m sure will capture the attention of many savvy investors,” he says.
“Working with businesses like Booktopia is why we started Equitise some four years ago. These businesses can use capital to grow when listing on the ASX, for whatever reason, is not an option.”
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