Tally has started a funding round ahead of a planned return to the public markets next year, having launched a rebuilt physical gold-backed banking platform last month.
The fintech group, which offers services via a physical debit card and a banking app, said it is looking to raise up to £3mln for marketing and ongoing technology development, incorporating a crowdfunding campaign.
But having restructured its tech development team in March and redesigned and built the platform from scratch in April and May, this has pushed back the start of the pre-IPO funding round and it is now expected it will be completed by the end of September.
“For Tally, the past three months have been both a challenging and transformational period,” said chief executive Cameron Parry.
“Following the release of our Tally App 2.0 at the end of January 2020 and a rapid intake of new customers in February, it became increasingly apparent that our initial platform technology which supported our earlier proof-of-concept app, wasn’t suitable for commercial scaling with the increased levels of security, processing speed and functionality capacity, that we required to match Tally’s commercialisation ambitions.”
After rigorous testing over a period of weeks, Parry said the live switch-over on June 1 led to the discovery that one third-party technology provider’s test environments had not replicated the true live environment.
“This resulted in a very bumpy migration and customers experiencing a lot of bugs in June that we had to hot fix,” he said.
The quarter ended with similar customers numbers to the start of the quarter at more than 5,000 account holders, which is expected to be boosted by a new marketing campaign around the theme “Up yours!” that will be pushed in the current quarter.
Following the implementation of the pre-IPO funding, he said Tally is likely to need a full six months of customer acquisition and activity metrics with the new platform to demonstrate suitable business growth and build the investment proposition for its IPO.
“Tally will then be able to assess the investment appetite and stock market climate at that time to determine when best to commence work to raise funds as part of an IPO.
“The time needed for the Tally banking platform to be rebuilt invariably has a knock on effect, however if by the end of 2020, it is not yet deemed appropriate for Tally to commence IPO preparations then the company shall endeavour to provide current shareholders with some form of a secondary private market for buying or selling Tally shares, to satisfy the appetite for existing shareholders wishing to divest or increase their shareholding,” the company said.
Published at Wed, 01 Jul 2020 09:29:00 +0000-Tally begins pre-IPO funding round after hammering gold-backed banking app into shape