The managing director of BuyMyplace, Colin Keating, is confident that a new injection of capital will help the online platform to build the scale necessary to promote the sale of DIY items as a "genuine proposal" in an industry still dominated by traditional real estate agents.
The trading of buyMyplace (BMP) shares was suspended last week, pending an announcement on a "material corporate transaction and capital increase" by October 8th.
The proceeds from the collection will be channeled into acquisitions to strengthen the online offering of BMP, further technological improvements and to provide the necessary working capital.
Keating, who took over the ASX minnow in November of last year and announced a turnaround strategy in July, said The Australian financial analysis Do-it-yourself sales constituted only about 3% of the Australian market, but "potential growth was quite significant".
"On a global level, do-it-yourself sales have grown rapidly all over the world, but Australia has traditionally lagged behind and this gives us tremendous growth opportunities for do-it-yourself property sales. ".
He added that more homeowners want to take control of the sales process and "look potential buyers in the eye" rather than pay a real estate agent to negotiate for them. "Who else is in a better position to promote their home, then the landlord?" He said.
The DIY platform that helps homeowners sell without an agent for just $ 695 has seen its market value plummet by two-thirds from the start of the year. At 7 ¢ a share, BMP has a market capitalization of only $ 5 million.
Its preliminary final report for the last year showed a 38% increase in revenues rose to $ 2.9 million, but losses increased by 43% to $ 5.4 million
At the same time, the disruptor burnt his money, with only $ 267,783 in the bank at June 30th, compared to $ 2.55 million in the previous year, a position that caused a warning about his future profitability by his auditor. Count Grant Thornton in May.
BMP's turnaround strategy is based on transforming the business from a pure do-it-yourself sales platform to a real proptech player that offers an "integrated platform and offer of services for all property transactions (purchase, sale or rent) "and to reign in expensive online marketing.
Just over a month ago, BMP acquired Pleased.Property, a $ 2 million online rental management platform just over a month ago.
According to its latest quarterly update, the website attracts 40,000 unique visitors per month seeking to buy and sell properties.
A survey of 2600 sellers who used BMP to sell their homes found that 98.9 percent would recommend the process to others, while 86.5 percent got the price they expected. More than three quarters declared that they would no longer use a traditional real estate agent.
"The results are indicative of a broader consumer empowerment movement, in which technology frees people to break the status quo," Keating said referring to the impact that Uber, Airbnb and Netflix have had in remodeling their respective industries.
The BMP Shares will remain suspended until the capital increase announced before October 8th is announced.