Fintech company ARMnet is hoping to become Australia’s first integrated and processing software platform as a service (iPaaS) provider within the financial services sector to list on the ASX.
The newly-incorporated company – established for the purposes of purchasing 100% of Axcess Consulting Group, which operates iPaaS as its core business – has launched an IPO with a view to an official listing later this month.
It plans to cash in on the business software market by raising up to $11 million with shares at $0.20 each to further the reach of iPaaS, primarily used by large corporates in the insurance, non-bank mortgage lending and funds management sectors worldwide.
Accessible from any portable device, the iPaaS platform has been designed to reduce costs and save time by translating, integrating and automating data from various software systems and sources via on-premises tools such as sales and marketing and customer support software applications.
It helps complex financial services organisations to improve business efficiency, productivity and accountability, while lowering the costs and risks in delivering different kinds of financial services.
ARMnet said funds would also be used to execute a global growth strategy which will include the opening of US and UK sales offices, expanding its team of sales and business analysts in Australia and increasing its marketing expenditure.
On listing, ARMnet will acquire 100% of Axcess, which currently has more than $100 billion of client assets in Australia, US, UK and Asia serviced by the ARMnet platform.
Over 70% of its long-term clients have been using the platform for more than five years.
According to advisory firm Gartner Inc, the iPaaS market is one of the fastest-growing sectors within the global information technology field, recording a compound annual growth rate of 39.35% in 2019.
Enterprise sales reached more than $2.53 billion globally in 2018 and grew 56% year-over-year in providers’ subscription revenue when compared with 2017.
Gartner estimates the market will reach $3.73 billion by mid-2021 and experience double digit growth between now and 2025.
“This market position will be enhanced [during this year] with an estimated 83% of enterprises moving to the cloud, opening up more opportunities,” it said.
ARMnet said the market’s growth offers a “tremendous opportunity” for businesses to shift their IT spending away from traditional (non-cloud) offerings to new cloud-based alternatives such as the iPaaS platform.
The company said it intends to take advantage of a growing iPaaS market in financial services for its continued profitability.
ARMnet plans to trade under the ASX stock ticker ‘AR1’.