VMob Group Limited (VML) has successfully completed a capital raising of $4m to facilitate growth and fund the company’s expansion into key global markets.
The capital raising was heavily over subscribed and was undertaken in both New Zealand and Australia - supported by five Australian institutions and one New Zealand institution as well as a significant number of high net worth investors, the majority of which are Australian based.
VMob Chairman Phil Norman says he was delighted with not just the level of interest but also the stature of both the institutional investors and high net worth individuals.
Echoing Norman's comments, Scott Bradley, VMob’s CEO, attributes this to two key contributing factors.
“Firstly, mobile marketing solutions that deliver personalisation leading to behavioural change and loyalty are the ‘Holy Grail’ for brands," Bradley says.
"Combine this with the uniqueness of our platform and the IP we have created and own makes us a very attractive proposition.
“Secondly the available revenue to mobile solutions is significant and low hanging.
"We know print readership is plummeting, which will result in revenue shifts away from this channel."
In 2012 in the US, direct mail and catalogue spend in the US was $51.1 billion (Direct Marketing Association, 2012 Statistical Fact Book).
Bradley believes it is logical, that just as search has eroded traditional print ad revenues, mobile solutions like VMob will quickly plunder traditional direct mail and catalogue revenues.
“The accountability and effectiveness that VMob and digital platforms have over newspaper and catalogues or printed coupons is un-contestable,’’ Bradley argues.
“VMob uses mobile to increase sales for bricks and mortar retailers and it’s that simple.
“We do it by ensuring they have more customers in store more often and, most importantly, it’s measurable and directly attributable to our activity, delivering genuine return on investment.”