Rent.com.au (RNT), a company specializing in rentals, has raised $2.5 million through a private share placement to accelerate the growth of its recently launched RentPay fintech service. The company sold 41.67 million shares at a discounted price of six cents each, which represents a 1.6% discount from the share price prior to the announcement of the placement.
The company plans to use the funds to ramp up marketing efforts for both the RentPay service and the core Rent.com.au business, as well as to add new features and functionality to the RentPay app. RentPay is a digital wallet that allows users to store rent money, manage payments, and set up automatic bank transfers on pre-set paydays.
CEO Greg Bader initially intended to raise $2 million, but the placement was oversubscribed, allowing the company to raise more. Bader expressed his excitement at the support of their larger existing shareholders.
Improved marketing efforts
Rent.com.au hired Hayley Parker, a New York-based general manager for marketing, in June 2021 to attract more users to its RentPay platform. After several months of developing marketing strategies, the company announced today that it will allocate funds from the $2.5 million placement towards implementing these strategies.
Apart from marketing RentPay, some of the funds will be used for general marketing of Rent.com.au’s rental portal. By increasing the company’s brand presence and awareness, the core business is expected to attract more customers to RentPay.
The company is also working on enhancing the app’s development and adding new features and functionality, including new payment choices, improved customer flows, and rewards systems for RentPay. These efforts are part of the company’s plan to accelerate the app’s growth.