Flick raises new capital to fund growth, develop tech

By Fiona Rotherham

Shannan Hargreaves - who grew up in Carterton - co-founder of Flick Electricity. Photo / Supplied
Shannan Hargreaves - who grew up in Carterton - co-founder of Flick Electricity. Photo / Supplied

Online electricity retailer Flick Electric has raised a further $5 million from shareholders to fund its growth, taking its total capital raising in the past two years to $15m.

The Wellington-based company, which won the New Zealand Hi-Tech award for most innovative service in May, offers electricity directly at fluctuating spot market prices.

Under the capital raise, cornerstone shareholder community-owned Eastland, which owns the Gisborne area electricity network, lifted its stake to 16.7 per cent from 11.1 per cent, while original investor Evander Group's stake was maintained at 9.2 per cent. The latest share offer values the fledgling company at about $30m.

Flick chief executive Steve O'Connor said it was pleasing to have the offer fully subscribed by existing shareholders who were "clearly heartened by the progress we've made".

Flick now has 12,000 customers, having acquired more than any other electricity retailer this year. Its growth has been enabled by the roll-out of smart meters nationally, particularly in urban areas.

Some of the new capital will be spent on developing the technology platform with an eye to rolling out in other countries. O'Connor says any expansion is unlikely to happen until next year.

- BusinessDesk

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