A Sydney HR tech company just raised $7.5 million

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Sydney human resources tech company Xref revealed Wednesday that it had raised $7.5 million through an oversubscribed share placement.

The public company made the announcement on the ASX, saying 12.5 million new fully paid ordinary shares would be issued at 60 cents each. The share price dropped 1.64% to 60 cents after the trading halt was removed Wednesday morning.

“We are delighted with the strong support received from our existing and new shareholders,” said chief executive Lee-Martin Seymour.

“We are building growth and scale, and have a great opportunity to expand in new regions and leverage channel relationships in those markets.”

Xref, which listed in 2007, increased sales by 137% in the as yet unaudited 2017 financial year, topping $4.1 million. In the half-year to December 2016, the software maker recorded a net loss of $3.4 million.

The new money will be used on international marketing, channel development, product development, and partner training.

The company counts Qantas, Westpac and NBN as customers that use its cloud software to automate reference checking in the staff recruitment process.

“We have developed a highly scalable platform which facilitates efficient entry into new markets, and our channel strategy allows us to on-board new clients without the need for a large sales team,” said chief technology officer Tim Griffiths.

Xref, which also completed a $8 million share placement last year, scored a major win in May when it finally secured the xref.com domain, allowing it to unify its online presence in different countries. That same month also saw it sign a major deal with English soccer team Chelsea.

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