Redbubble announces strong start to FY2016 and confirms ASX IPO intention

Melbourne, 16 March 2016 - Redbubble, the online creative marketplace powered by independent artists, has finalised a $12 million pre-IPO funding round led by Blackbird Ventures. The pre-IPO funding was undertaken to bring new institutions onto the Redbubble register.

The capital raised will support Redbubble’s future growth ambitions and position the company to execute its mission of creating the world’s largest marketplace for independent artists.

Redbubble CEO and co-founder, Martin Hosking said, “Redbubble is fast becoming the largest global consumer internet company to have come out of Australia. With 93% of sales offshore, we have caught a global consumer trend towards more distinctive and personalised products. The 442,000 artists currently in the Redbubble marketplace mean that customers the world over can find just what they are interested in at Redbubble.com.”

Redbubble is well advanced in preparation for an ASX IPO, subject to market conditions.

Redbubble non-executive Chairman, Richard Cawsey, said, “We are pleased to have chosen the ASX as our preferred market for listing, and are seeing support here for a truly global company. The capital raised will help us in implementing our growth strategy and pursue our global ambitions”.

Half year highlights

Redbubble has had a strong start to FY2016. Gross Transaction Value (GTV)1 in 1H 20162 was AUD$80.6 million. This reflected growth in constant currency3 of 55.5% versus 1H 2015. On a floating currency basis4 the growth was 80%. Other half year highlights include:

  • 63% growth in customers, with 1.25 million customers purchasing on the site during the half year
  • 98% growth in repeat GTV (customers who have previously bought on the site and have come back).
  • 62% growth in selling artists, with 107 thousand selling art in the marketplace
  • An addition of 9 further products available for purchase, taking the total number of products to 51.
  • Development of a German language site (which launched in March 2016).

“Growth during the half-year highlighted the marketplace dynamics at play at Redbubble,” said Martin Hosking. “Redbubble’s growth continues to be largely organic – as more artists join, more customers have a reason to buy and with more customers, there is more reason for artists to sell through the marketplace. This contrasts how traditional retailers work which generally rely on paid acquisition to grow.”

New key executive appointments

To position Redbubble for the next wave of growth, the company has strengthened the team through a number of key hires. Victor Kovalev has joined as Chief Technology Officer based in Melbourne. He was previously VP of Engineering at Indiegogo based in the Silicon Valley. Victor will lead the Redbubble engineering team as it continues to scale its online marketplace.

“Adding Victor to the team brings in key Silicon Valley expertise in scaling a high growth company. He has proven success and a wealth of knowledge in scaling marketplaces, mobile development and building world-class engineering teams, “ said Hosking.

In preparation for an ASX listing, Chris Nunn has transitioned from his Board role to take on an executive role as CFO. He has vast experience as CFO of a number of ASX listed companies, including CFO within the management team that restructured Centro Properties Group. His replacement on the Board is Grant Murdoch who has an extensive background in corporate finance and is a non-executive Director of a number of ASX listed and unlisted companies.

“The addition of Chris to the Senior Leadership Team and of Grant to the Board, continues our focus on improving corporate governance in preparation for a potential IPO,” said Cawsey.

The addition of the new roles has seen Redbubble double its headcount over the last two years. As of 1 March there were 158 people working at Redbubble, with 90 based in the Melbourne office.

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  1. The cash value of sales through the marketplace including taxes and artist’s markup
  2. The half of the year to 31 December 2015
  3. Removing the impact of foreign exchange rate movements
  4. Including the impact of foreign exchange rate movements

About Redbubble

Founded in 2006, Redbubble is a global online marketplace powered by 432,000+ independent artists. Redbubble’s community of passionate creatives sell uncommon designs on high-quality, everyday products such as apparel, stationary, housewares, bags, wall art and so on. Redbubble helps independent artists profit from their creativity and reach a new universe of adoring fans. For customers, it’s the ultimate in self-expression. A simple but meaningful way to show the world who they are and what they care about. In 2015, Redbubble reached over two million buyers, each finding a product that speaks just to them. In turn, independent creatives earned over twenty million dollars through the marketplace.

Media Contacts

Caroline Shawyer, The PR Group — Tel: +61 (0) 401 496 334 — E: caroline@prgroup.com.au
Kate Winney, The PR Group — Tel: +61 (0) 403 200 299 — E: katew@prgroup.com.au

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