Ingogo’s mobile app: small business owners can process customer payments on the spot using a Bluetooth-enabled mobile device / users can create and send Xero invoices automatically and receive next day payment settlements all year round.

Fran Foo for The Australian writes: MOBILE payments start-up ingogo has secured more than $9 million in funding, attracting several high-profile investors including one with links to Alibaba, the Chinese e-commerce player making waves on the New York Stock Exchange.

The funding will help ingogo diversify its business, primarily to develop a mobile solution for small businesses which can accept payments and make accounting entries in real-time, alleviating the need for manual processes.

Ingogo, better known for the taxi app which bears the same name, is gearing up to go public on the ASX in the first half of next year. The capital injection values the business at more than $45m, with $16.2m raised to date.

John Ho, who runs major ­Alibaba investor Janchor Partners, a $US2 billion ($2.3bn) equity-focused hedge fund in Hong Kong, invested in ingogo as an individual.

Other investors include MYOB co-founders Craig Winkler and Chris Lee, Melbourne family offices, Pitt Capital, and a number of local and Asian institutional funds. The latest round saw equity-based crowd-funding platform VentureCrowd raise $1.2m from nearly 50 individuals who were pre-qualified sophisticated investors.

Ingogo is working with online accounting software firm Xero on its diversification plan where small business owners can process customer payments on the spot using a Bluetooth-enabled mobile device.

Ingogo claims users can create and send Xero invoices automatically and receive next day payment settlements all year round.

The alliance is a natural fit for the start-up as Mr Winkler and Brad Shofer, another MYOB co-founder and ingogo investor, both have significant stakes in Xero. [snip].  The article continues @ The Australian, click here to continue reading...

VentureCrowd fund-raising adds $1.2m to start-up ingogo’s $9.1m raising Rose Powell for the Australian Financial Review writes: Sydney start-up ingogo has raised $9.1 million, including $1.2 million via a ­crowdsourced equity platform, in a sign that new funding mechanisms are starting to take off.

Taxi booking app and mobile payment system ingogo closed a $9.1 million round led by UBS and Canaccord Genuity on Tuesday. The funds come from a range of local and Hong Kong investors who have valued the three-year-old company at $45 million.

Founder and chief executive Hamish Petrie said start-ups needed to either raise from multiple investors or look overseas for funding.

“We’ve got a range of investors now, from well-known start-up backers to more private institutional investors,” Mr Petrie said. “It’s a really interesting mix and helped us get the round to where we needed it to be.”

The taxi booking app is available in Sydney and Melbourne. The new funds will go towards establishing teams to drive growth in other cities, as well as developing the mobile technology.

Mr Petrie said his team of 26 was increasingly focused on its mobile payments system unit. They are beginning to roll it out beyond the taxi network as they field inquiries from electricians, plumbers and small retailers.

Fifty people invested $1.2 million via VentureCrowd, which enables sophisticated investors to invest up to $2500 in each company, a far smaller amount than a usual start-up investment. The companies and investors are vetted by Artesian Venture Partners.

FOURTH DEAL OFFERED

Ingogo is the fourth start-up “deal” offered on the platform since it launched last month. The deal was over­subscribed, closing in three days.

Chief operating officer Tim Heasley was excited about the platform but amazed by ingogo’s rapid success.

“This is a pretty hot deal but it’s an example of what’s possible,” Mr Heasley said.

“The smaller-chunk investment means you don’t need to have as much money so this enables us to open up and democratise what has been the preserve of the rich and well connected. “Just imagine if the federal government finally lets us open it up to everyone.”

The start-up industry had hoped for updates to existing laws in the Harper review that was released last week.

But the report did not even mention the emerging tactic, despite months of consultation that resulted in a report by the Corporations and Market Ad­visory Committee, which the Abbott government is about to abolish.

Changes to the regulation of crowdsourced equity – technically legal but difficult – have been postponed.  The article continues at the AFR, click here to continue reading...