Almost one year after raising a $600,000 equity round to find off insolvency, GoCatch is looking to IPO on the ASX in June this year and raise $5 million, as well as an additional $1 million in pre-IPO funding.
Co-founded by Andrew Campbell and Ned Moorefield in 2011 the company managed to beat the likes of Uber and Lyft to the market and was quoted as telling potential investors that “GoCatch is breaking apart the Cabcharge network model and redefining how the industry works”.
Despite the earlier mover advantage GoCatch has faced a number of do-or-die situations in its short life. The first of which occurred in late 2016 when the company managed to raise $2.1 million by telling investors that failing to raise the funds would jeopardize the business’s ability to continue operating as a going concern.
In April 2017 it was tapping investors for more money in a $600,000 raise that was largely underwritten by co-founder Andrew Campbell and his company Centric. At the time an article in the Australian Financial Review referred to documents that showed the company was burning through $275,000 per month.
During this period GoCatch also dealt with a large number of changes at the executive level. Co-founder of the business Alex Campbell was CEO until October 2014. He was replaced by the other co-founder of the business, Ned Moorefield who remained at the helm until 2016. He in turn was replaced by David Homes, before Campbell returned to the position of CEO in May 2017.
Despite the high level of turnover, especially during the last 12 to 18 months, GoCatch appears to have got itself on a more solid financial footing. Speaking to the AFR Mr Campbell is quoted as saying that GoCatch is on “track to break even in June and that cash burn was down to $40,000 per month.”
This improvement in its financial position also coincides with the company’s decision to focus on the corporate market and government agencies. It’s website bills GoCatch as the “GST compliant solution for your business travel needs.”
Even with the recognition that the company would be better served by focusing on the corporate market GoCatch still faces significant competition. Uber remains the dominant player in Australia and new entrants Ola and Taxify have recently arrived in the country.