After raising about $7 million to date, mobile tech company Yatango is looking to secure another $5 million in capital as it takes on the telecommunications sector.
Yatango founder Andy Taylor told Business Insider this piece of capital would be about scaling up the numbers and getting the business ready for an IPO in the second quarter of 2015 where it hopes to raise between $10 million and $15 million.
“This money is all about awareness, marketing, scaling up the acquisition numbers,” Taylor said.
The company is currently running two raising processes, one in Australia and one in the UK.
One thing Taylor has noticed is the valuations in the UK are coming in much higher than the Australian ones.
“The maturity of the market, it’s such a much more mature market [in the UK],” he said.
“There is a difference, you’re kind of getting dollar for dollar or dollar for pound so it’s almost double – it’s crazy.”
While it’s been said previously, Australian startups are considered cheaper compared to ones launching in Silicon Valley for example.
Taylor said while the company would like to list in the US in the future that would still be about “three to five years away”.
He said a more realistic strategy is to follow what companies like cloud-accounting firm Xero has done, listing on the ASX and launching into the US market.
“It’s either the UK or Australia, the US will come much later,” he said. “We’re much too small for the US.”
“We’ll do what Xero is doing, we’ll springboard to the US.”
Recently there have been a bunch of tech companies listing onto the ASX using a reverse takeover or back door listing process, something Taylor has considered and rejected.
“We’ve been to the rounds, we’ve looked at a few and it’s just not for us,” he said, adding, “There’s a lot of complexities and baggage that come with back door listings.”
He said listing directly is a much better option for the company.
“We really want to do this properly,” he said.
“We’ve got the revenue, we’ve got the runway, we’ve actually got a real business that we can list directly.”
Ahead of the launch Yatango is building an a new application that sits on top of existing telecommunications infrastructure that is “all around social sharing, analytics and really revolutionising the customer experience,” Taylor said. The company uses algorithms to analyse a customer’s mobile usage and make predictions about what they may need.
He said the same tech could be used in e-commerce to predict product offers and could be extended into the banking sector which is an area Taylor sees as an opportunity for Yatango.
“What we use data for is to make a more relevant customer experience,” he said, adding the idea would be to use data to help customers budget and save more effectively.
Taylor said he has already approached the big banks and is getting close to announcing a partner for the product next year but said it doesn’t look like it will be one of the big four.
“Just like in the telcos’ case they’re all big, fat and bloated, legacy systems, struggling to innovate,” he said.
“We want to leverage what we’ve built with our rewards program and really gameify this as well so there’s some real rewards in it for customers to use the platform.”
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.