Software firm Checkit declares Â£ 21million equity placement as it targets ‘office-less workforce’ and expansion in North America
- The âsmart operationsâ activity offers stocks to investors at 46p each
- Checkit’s clients include renowned companies such as BP, Sodexo and Center Parcs
- In the short term, the firm aims to double its annual recurring turnover (ARR)
Software company Checkit is planning a major capital increase to help grow in North America and stimulate trade with businesses in the office-less worker sector.
The ‘smart operations’ firm hopes to raise around Â£ 21million by offering shares to investors at 46 pence each, a modest reduction from the group’s closing share price on Thursday.
Up to Â£ 10million will go to sales and marketing, including Â£ 2-3million for marketing in the US, with most of the remaining Â£ 11million going to product development, such as technology smart buildings.
Technology Provider: Software Company Checkit Plans Major Capital Raise to Help Grow in North America and Boost Trade with Firms in the Office-Worker Sector
In the short term, Checkit aims to double its Annual Recurring Revenue (ARR) to ultimately make Â£ 100million per year, in part by becoming a fully software-as-a-service business.
He revealed he had already more than quintupled his sales pipeline since the start of the year to Â£ 13.2million, thanks to strong demand from his existing customers.
Cambridge-based Checkit offers technology focused on increasing productivity and tracking employee and asset progress in industries with high levels of âoffice-lessâ jobs.
Current customers, of which the company said more than 500, include large companies such as French food service group Sodexo, Center Parcs and oil giant BP, and organizations like the National Health Service.
The software vendor believes the potential for expansion is great as the majority of businesses still use paper and other manual processes in their work, which can lead to what it calls âdark operationsâ.
Checkit defines the term as “when a large portion of operations is hidden, making it difficult for managers to measure productivity and identify risks and opportunities within their business.”
Rationale: Checkit offers technology focused on increasing productivity and tracking employee and asset progress in âoffice-lessâ industries such as healthcare and hospitality
About 2.7 billion people are employed in the officeless workforce globally, according to business management consultancy Quinyx, which represents about four-fifths of the total workforce. global work.
According to Checkit, the digitalization of this industry would lead to lower costs, greater efficiency and allow companies to better track and improve the performance of their employees and assets.
The company estimates that around Â£ 570bn could be spent on technology by the officeless work sector to bolster its operations, and it could potentially grab a 5% stake, or Â£ 27bn, of this market.
He said his “platform is designed to make pen and paper obsolete by providing deskless workers with the technology they need.” By optimizing and automating the operational performance levels of the business, it can help customers evolve and grow through improved efficiency. ‘
Checkit’s bosses also believe it is well positioned to benefit from a “large, fragmented market” as its competitors offer a more limited product offering.
They want to expand the group’s reach to four other sectors – logistics, manufacturing, education and construction – to strengthen its presence in hospitality, retail and healthcare.
âBy evolving both the product and the go-to-market functions, there are significant opportunities for expansion into these adjacent industries,â the company noted.
âIn this context, the company has identified a number of areas in which it believes it can continue to accelerate its growth in order to gain market share and improve its products in order to maintain its position in the market and further develop its customer base.
Checkit’s stock price closed 2.1% lower at 47p on Friday.