Mobile payments company Pushpay aims to accelerate growth through deepening the engagement between churches and their members.
Mobile payments technology developer Pushpay is raising US$25 million in a private placement and broadening its focus to engagement within the faith sector.
Pushpay's shares went into a trading halt today ahead of the company announcing the US$25m private placement. Pushpay, which joined Intuit's reseller programme in May, also set itself a new annual committed monthly revenue target of US$100m by 2018.
The bookbuild for the private placement will take place today before trading resumes. Pushpay intends to list in the US within the next 36 months.
"While historically we have solely focused on offering payment solutions, in late 2016 we announced the acquisition of the Bluebridge Church Apps business and our additional focus on engagement solutions," Pushpay said.
"Our experience has taught us that our customers need high quality engagement tools to complement our payment solutions. We are now focused on engagement first and giving as a subset of increased engagement."
Pushpay said it has developed analysis which shows that revenue from existing customers continues to increase over time at an average compound monthly growth rate of approximately two per cent.
Pushpay calulated its lifetime value/customer acquisition cost ratio at more than 10, which translates into total lifetime value of its customer base of US$568 million as at 31 March 2017, assuming a 95 per cent yearly revenue retention rate.
Pushpay said among other initiatives it would further advance its account based and field sales strategy to target a greater share of medium and large church segments.
Development of new products, across apps, analytics and events will also be accelerated.
The company said it added six of the top 100 largest churches in the US to its customer base in the last quarter - ten of the top 20 and 42 of the top 100 largest churches in the US use Pushpay’s software.
