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Published on: March 25, 2014

Accelerating the strategic shift

Leading mobile money specialist Monitise has raised £109m at 68p per share (a 1.1% discount), equivalent to 9.5% of its existing share capital, to fund the shift to a SaaS model, lowering financial and technical barriers to entry for customers by transitioning away from upfront licence and integration revenue to a purer subscription model. One third of the proceeds are to accelerate development of a new standardized, API-based platform, with the rest covering nearterm increased losses from reduced revenues and higher costs. The company now targets EBITDA breakeven in 2015/16, with a 2018 target of 200m users at a £2.50 annual ARPU.

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