Rakon credited with driving IoT startup Thinxtra’s success

NZX listed electronics company Rakon says its investment in Australian IoT startup Thinxtra has been instrumental in driving that company’s growth.

Thinxtra, founded in 2015, holds licences for Australia, New Zealand and Hong Kong to proprietary low powered wide area network (LPWAN) wireless technology for IoT from French company Sigfox and is well advanced in rolling out networks in Australia and New Zealand.

Rakon has made two investments in Thinxtra and holds 42 percent of its equity. Its initial investment of  $A0.8m in December 2015 for 11 percent of the company was topped up with a further $4.2m in April 2016. Rakon chairman Bryan Mogridge also chairs Thinxtra and has personally invested $550,000 in the company. Rakon director Brent Robinson is also on the Thinxtra board.

Thinxtra CEO, Loic Barancourt said: “Our relationship with Rakon has enabled Thinxtra to be a strong New Zealand influencer and is a strong reference for Thinxtra when talking to large customers or institutional investors.  Additionally, Bryan and Brent bring solid technical, commercial and financial experience and governance to the Board.”

In Rakon’s annual review, released today, Mogridge said Thinxtra was in a unique position to lead the IoT revolution within its territory of Australia, New Zealand and Hong Kong. “Currently it has … coverage available to 71 percent of the population in Australia and 89 percent of the population in New Zealand,” he said.

“Thinxtra, at this early stage, has 1.5 million committed connections from existing customers with a gross revenue committed of $A18 million over the next eight years, and it has over 50 million potential connections in its current pipeline.”

He added: “Thinxtra is in the process of a Series B round of fund raising for $A15 million, with 33 percent of that committed, and the remainder in advanced stages of discussion and due diligence with interested parties. This round of capital raising is anticipated to be sufficient to complete Thinxtra’s network build within the three countries it will cover. It should also be sufficient to enable Thinxtra to develop its active customer base sufficiently, for the cash flow to sustain the business’s ongoing activities.”

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