As Amazon Move In Local Supply Chain Operator Looks To Raise $15M
Netget Limited who trade in Australia as iRexchange is looking to raise $15M with a system that they claim empowers independent retailers and suppliers to better compete up against the likes of Amazon.
The Company that claims they have already signed up 270 retailers in Australia, was established in 2015, they describe themselves as an intelligent trading platform and next generation supply chain operator and are now looking to reshape an outdated, inefficient and unfair supplier-wholesaler-retailer model in Australia.
:We decided to rebuild the model, developing a fair and transparent system that puts suppliers and independent retailers in the driving seat.
No middlemen, no wholesalers and no convoluted and costly processes” Company executives claim.
They said that their end-to-end model capitalises on the disruptive capabilities of new technologies and distribution systems to enable suppliers and independent retailers to grow their businesses, and to offer consumers greater choice.
They claim to be working with a tier 1 global consulting firm and have partnered with DHL.
The platform is also described as an intelligent digital marketplace and fulfilment capability “that restores fairness and transparency in the retail sector, and supports suppliers and independent retailers to improve revenue and growth”.
The Company currently has 60 retail, supply chain and technology experts working for them.
Their sales pitch is based on making it easier for suppliers to reach large scale consumer markets.
They claim that with an open ranging market, “suppliers of all sizes have the chance to grow at their own pace – from local, to state, to national suppliers” the Company claims.
For retailers, they said that “Net product pricing ensures transparency on price. The supplier’s product price and all promotional discounts are passed through to the independent retailer without any mark ups”.
They claim that their system delivers margin protection from intermediaries and wholesalers with “last mile” cost effective delivery and transparent pricing through to the Independent Retailers.
According to an information memorandum the Company is only managing 2,500 SKUs.
Their target is 2,500 independent retailers operating in a market worth $18 billion.
To date, iRexchange has raised $25m in funding predominantly through the support of existing shareholders.
Executives claim that this has been used to build their technology platform and hire staff.
The unknown operation has not said which retailers are using their system as they look to raise $15m as a pre-IPO round of financing as it continues to gain traction with Independent Retailers and Suppliers and explores strategic opportunities ahead of an ASX listing targeted for Q2 CY18.
According to Shaw and Partners Limited bids are due by Midday, Tuesday 8 August 2017.