Limitless Technology Group, a private Malaysia-based vertically integrated e-commerce group focused on flower and gifting brands, is on the hunt for more acquisitions ahead of a potential IPO, said CFO Kai Kux.
The company, which acquired Australian e-commerce flower and gifting brand LVLY for AUD 35m (USD 25.6m) earlier this month, as announced, is already talking to other potential targets and expects to complete its next deal by the end of 2022, Kux told this news service.
The company welcomes approaches from advisors with introductions to potential targets and is also ready to engage with the advisory community on investor introductions and future funding options to support growth, Kux said.
Limitless could finance small deals from its own cash flow but would need to raise capital for more substantial deals, Kux said. A listing is being considered as one funding option, and the company expects to be “IPO-ready” by Q322, he added, without elaborating further on any potential IPO plans.
Limitless raised AUD 20m to support funding of the LVLY acquisition via pre-IPO convertible notes and venture debt, with the rest being funded out of the company’s profits, Kux said. Silicon Valley-based Partners for Growth provided the debt, while Sydney-based investment firm Perennial led the pre-IPO raise with Sydney-based investment firm RetailTech Capital also participating, he said.
Limitless has previously also raised some AUD 2m in equity from Malaysia-based investment house Asia Venture Group and Malaysia-based investment firm RHL Ventures, Kux added. Founded in 2016 by Maximillian Lotz (CEO) and Niklas Frassa (COO), the company is majority owned by the founders and other management, Kux noted.
Limitless, which has five brands including flower brands flowerchimp.com, bloomeroo.com.au and now also lvly.com.au, confectionery brand cakerush.my, and fashion brand themodestbrand.co, is on the look-out for acquisitions that can help grow existing brands’ market share or take it into new complementary gifting categories, Kux said, citing as examples experiences or homeware like candles.
It is looking for quality brands with good design for the 25- to 44-year old female demographic, both for the high-end and mass-appeal markets, and welcomes company leaders to stay on, Kux said. For example, Hannah Spilva, who co-founded LVLY in 2015 with Verity Tuck, has joined the Limitless board as part of the recent transaction, he noted.
Limitless, which already sells in South East Asian markets, including Malaysia, Indonesia, the Philippines, Singapore, Hong Kong, and now also Australia, will consider opportunities across the APAC region, but is particularly focused on its current geographies of operation and is especially keen on Australian brands with appeal in South East Asia, Kux said.
Players in online gifting like global UK-headquartered flower delivery network Interflora tend to be ‘order gatherers’ whereas Limitless differentiates itself in that it has a proprietary tech platform and vertically integrated operating model underpinned by direct relationships with local growers and wholesalers, same-day logistics, and in-house marketing capabilities, Kux said.
There are currently some 25 million ecommerce buyers in Australia with CAGR growth of 8% expected in the next year, and some 300 million in South East Asia, with CAGR growth of 20% expected, Kux noted.
by Louise Weihart
Senior Journalist, Sydney