Data Analytics Software Company Phocas positions for rapid growth in the U.S. and UK with AU$45 million (US$34 million) capital raise

Australian global data analytics software business Phocas Software announces a AU$45 million (US$34 million) capital raise to accelerate its growth in America and the United Kingdom, expand into new industries and develop its core products.

Ellerston Capital led the capital raise with a AU$35 million (US$27 million) equity investment. OneVentures, an existing shareholder who first invested in the company in 2018, provided an additional AU$10 million (US$7 million) equity financing, reinforcing the venture capital firm’s confidence in the company.

Phocas is a cloud-based data analytics Software-as-a-Service (SaaS) company with operations in the US, Australia and the UK. It is a growing, profitable company which should reach circa AU$50million in revenue by July 1, 2021. The business employs 200 people and has more than 1,900 mid-market customers, including Karcher, Burson Automotive, Repco, Henry Schein, Thermo Fisher Scientific and Fiskars Royal Doulton in Australia. Litex Industries, American Metals Supply, Dixie Plywood and Equipment Controls Company in the U.S. And Ruroc, Bayliss and Harding, Savona, Midfix and Wessex Packaging in the UK.

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The company will use the funding to substantially invest in its core data analytics and new financial products, which are in high demand by midmarket manufacturing, wholesale and retail businesses globally and expand into new industries. The funding will enable the company to supercharge its sales and marketing capacity in the U.S. and the UK, to support expansion into new verticals and grow out its AI capabilities, positioning Phocas as a global leader in data analytics solutions for mid-market customers.

Phocas’ cloud data analytics application plugs into enterprise ERP systems and multiple other data sources and has over 20 global ERP partners, including U.S. giant Epicor. The technology allows people across a company to collate and understand the key numbers critical to their work. Phocas has a low barrier to entry, reduces layers of data, decreases administration costs, and allows everyone within an organisation to understand financial performance better and act on it.

Toni Korsanos, an Investment Director of Ellerston JAADE, joins the board of Phocas.

“Phocas is Ellerston JAADE’s 6th investment, and we are excited to be joining Myles and the entire Phocas team in supporting its growth objectives. We see great strength in the products that Phocas offers, leading cloud-based SaaS BI software specializing in Data and Financial Analytics. Its products drive a high affinity with customers, assisting in decision support through the ease of data access, analysis and reporting. Phocas has global reach and strong potential for growth especially in the U.S. We look forward to a great partnership with the Phocas team and stakeholders,” said Toni.

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OneVentures has been an institutional investor in Phocas for the last four years and has worked alongside the management team to support them in restructuring their business, enhancing the global management team and successfully positioning the business’ growth to unlock the future value, with the company releasing two new products in 2020.

“Phocas has a significant market opportunity and is poised now to accelerate its growth in 2021 and beyond. With many listed SaaS companies like Nuix and Wisetech demonstrating value in these types of businesses, Phocas will be a company to watch for the future,” said Dr Michelle Deaker, Managing Partner at OneVentures who joined the Phocas board in 2017.

Phocas was co-founded by Myles Glashier in 2001 who continues as the global CEO.

“Phocas always has a razor-sharp focus on the customer. As an agile organisation, we continue to respond to their needs. Customers will benefit from this new investment as we expand the features and functionality of the core product for our clients’ sales, purchasing and executive teams. We also continue to bring business intelligence to the finance function, making financial performance analysis a daily not a monthly activity,” said Myles.

“Phocas has only really touched the surface of its growth potential. We could continue to bootstrap the company but taking on this capital injection will accelerate new vertical market entry and our new product rollout. The reality is mid-market business can’t run operations on spreadsheets anymore. They need an effective tool to manage all the data and make fast and accurate decisions from workplaces at home or across divisions. It’s a large addressable market and unmet need, and Phocas plans to capture and dominate our core mid-market segment globally,” adds Myles.

Phocas was advised by Blackpeak Capital during the capital raise.

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