At least from a document management perspective, this might just be the most flawless initial public offering in history. It ought to be, anyway. After all, Ansarada's software is explicitly designed to steer small companies through processes like IPOs. So, the company should know how to navigate its own IPO with ease.
Recently, ahead of its hopeful listing on the Australian Securities Exchange in 2020, Ansarada sent a request for proposal to equity capital markets bankers, encouraging them to pitch for sell-side roles.
It is believed that the international software-as-a-service company told investment banks it brings in about $50 million in annual revenue. If Ansarada's listing were to be successful, it would hit the ASX with a valuation higher than $200 million.
It is expected that joint lead manager appointments will be made within the next several weeks.
The pitching follows a highly successful Series A funding round 18 months ago, in which Ansarada raised $24 million led by Ashok Jacob's Ellerston Capital. Other backing investors included Belay Capital, Tempus Partners, and Australian Ethical Investment. Hundreds of thousands of dollars in advisory fees were donated to charity projects in Nepal and Uganda.
The Sydney-based company signaled then, in March 2018, that it was hoping to hit the ASX boards within two years. With respect to the timeline, Ansarada is on track to meet that goal.
According to published reports, the company’s co-founders will remain invested and proceeds from the IPO will meet surging demand for its software, speed up the rollout of new products, and fund future growth opportunities.
Ansarada was founded in 2005 by Rachel Riley, Andrew Slavin, Sam Riley, and Daphne Chang. Sam Riley serves as the company’s CEO. At the time, three of the founders were involved in their own M&A deal. But they were frustrated by the lack of virtual data room options open to them. So, they joined forces with an entrepreneur to create their own. Since then, their SaaS business has grown to become one of the leading providers of AI-powered data rooms and organizers of business information.
In fact, Ansarada boasts the world’s number-one SaaS secure data room and can set one up within an hour, if the client requires immediate access.
In addition to helping small businesses via its IPO Pathway offering—to accelerate ASX listings, for example—Ansarada provides a range of business organizing software to help simplify complex activities like capital raising, mergers and acquisitions, acquisition integration, and strategic reviews. Its virtual data room can streamline and simplify the due diligence process.
Five years ago, Ansarada launched an M&A video game to attract investment bankers who wanted to exercise their competitiveness in a risk-free setting.
Today, the company also utilizes AI to power deals and other corporate transactions. Ansarada claims to have gathered data from more than 30,000 transactions that have been run through its software. Just seven days after a deal starts, the company claims, its software can predict with 97 percent accuracy whether a purchaser will finish the due diligence process and present an offer to the seller.
“Every day, we help thousands of businesses get ready for and experience success in raising capital, M&A, post-acquisition integration, tenders, audits, and more,” says the company website.
“The Ansarada platform is designed to help you realize and raise the potential of your business - every step of the way. Our event preparation tools allow you to seamlessly sync information siloed across your business into a single source of truth containing your most accurate and up-to-date information.”
One of the company’s clients, Alex Jordan, a partner at Deloitte, has reportedly used Ansarada’s SaaS for twelve years. Having experienced its development firsthand, he now uses the platform to “manage multiple transactions simultaneously, keep processes seamless and risk-free, and uncover unique insights with AI to drive the strongest outcomes,” according to Ansarada.com.
Ansarada has 13 sales offices and 200 staff situated throughout the world, including offices in New York, Chicago, London, Amsterdam, Frankfurt, Johannesburg, Beijing, and Hong Kong. With locations on five continents, the company has demonstrated its global reach. Among its prestigious clients are Google, Credit Suisse, BP, Goldman Sachs, PwC, KPMG, JP Morgan, and ING.