CPE News (10.11.2023) – Vendasta Technologies Inc. has closed a recap with $20 million in new funding and at the same time, a $52.5 million debenture converted to equity.
Foundry led the financing, with Brad Feld, partner and co-founder of Foundry, joining the board of directors.
Vendasata said the financing provides the company with a clean capital structure and funding for future acquisitions to accelerate growth.
In January 2023, Vendasta Technologies celebrated its 15th year in operation since it was founded in 2008. At the time, Vendasta said it would remain as a private company and expected to add to the $160 million in private capital it has raised to date.
In March 2021, Vendasta filed a proposed initial public offering (IPO) to raise up to $100 million. Vanedge Capital and BDC Capital were then disclosed to own a combined 60% of pre-IPO Vendasta. Vensdasta never formally withdrew its IPO.
In the past two years, Vendasta has acquired four companies, including Oakland, California based Broadly in January 2023.
photo credit: Vendasta
News Release
Vendasta raises $20M to fuel strategic acquisitions
Saskatoon-based software company welcomes Foundry partner Brad Feld to board of directors
SASKATOON, SK, Oct. 11, 2023 /CNW/ – Vendasta Technologies today announced a CAD $20 million financing. At the same time, a CAD $52.5 million debenture converted to equity. This financing provides the company with a clean capital structure and funding for future acquisitions to accelerate growth. Vendasta was recognized on the Globe and Mail’s 2023 list of Top Growing Companies in Canada with 135% growth from 2020 to 2022.
Brendan King, Vendasta’s founder and CEO said, “Vendasta is the industry leading platform for channel partners to market, sell, bill, fulfill, and deliver digital solutions to SMBs. Today over 200K small and medium sized businesses are serviced through Vendasta’s platform. These new funds are earmarked for strategic acquisitions to achieve our mission. We won’t stop until our channel partners can provide everything their SMB customers need to run their business from a single login.”
In the past two years, Vendasta has acquired four companies:
CalendarHero, to provide meeting and scheduling solutions to SMBs.
MatchCraft, to equip channel partners with tools to effectively advertise on Google, Bing, Facebook, Instagram, and other social platforms on behalf of SMBs.
Yesware, to advance its core CRM by allowing for email outreach at scale.
Broadly, to help local businesses engage with leads and customers, automatically send review requests, and streamline invoices and payments.
Foundry led the financing, with Brad Feld joining the Board of Directors. “We’ve gotten to know Vendasta over the past year through their acquisition of two of our portfolio companies. We believe they have built the most compelling platform in the market for selling and delivering B2B software to SMBs,” said Feld. “Today, there are thousands of B2B SaaS companies whose growth has slowed while they are sub-scale. We believe Vendasta is a natural consolidator of these companies.”
King concluded by saying, “We’re super excited to work with Brad and the entire Foundry team with their deep experience in high growth software companies. Vendasta has enjoyed remarkable growth over the past several years and I am really pleased that Vendasta will be profitable by the end of the year. SMB’s more than ever need digital solutions to grow and compete. Through internal R&D and acquisitions, we are positioning Vendasta to capitalize on satisfying that growing demand.”
About Vendasta
Vendasta is a provider of digital solutions that help businesses operate and grow. It delivers these solutions through a vast network of channel sellers and through its direct brands. In September of 2023, Vendasta was listed on The Globe and Mail’s 5th annual list of Top Growing Companies in Canada with 135% growth over the past 3 years. Based in Saskatoon, Vendasta is now a global enterprise with offices in Saskatoon, Boston, Boca Raton, and Chennai and employs over 750 people around the globe.
SOURCE Vendasta Technologies Inc.
For further information: Media Contact Information: Catriona Barcoe, Sr. Manager of Marketing & Communications, Vendasta, media@vendasta.com