Vote of confidence for parking systems firm Frogparking
A group of high-profile Kiwi investors have made a multi-million investment in Kiwi-based parking systems company Frogparking.
The group includes former Federated Farmers president and ex-Fonterra director Malcolm Bailey, and former boss of the New Zealand Venture Investment Fund Franceska Banga.
Bailey has joined Frogparking's board as chairman after the group injected an undisclosed amount equating to a 25 per cent stake.
Over seven years, Frogparking has been quietly building up its customer base, and its revenue now exceeds $10 million.
Its five-year target: $50m.
The investment will allow Frogparking to pursue its export path, pump more money into R&D and hire staff in the United States and Australia.
Managing director of Frogparking Shareena Sandbrook said the company's customer base included US mall developer company Irvine Company, the Dubai Regional Transport Authority, and New Zealand's three major international airports.
With a staff of 27 in Palmerston North, the company develops parking solutions which include solar powered sensors, Bluetooth and the cloud.
Its system detects vacant spaces, guides drivers to their parks, help them pay, and feeds useful data back to the carpark's owners.
Data collection was a big point of difference for Frogparking, allowing malls to send out promotions and further their social media goals.
"It's up to the users. They select their preferences on what they provide information on," Sandbrook said.
"We're all about providing data on what customers want, how often they're coming, where they like to park, what stores they like to visit, so we can make it more attractive for them to visit that facility."
Frogparking was co-founded by Sandbrook and her father Don, after he sold an aircraft tracking business Spidertracks.
With the technology team still in place, "we saw an opportunity in the market to deliver smart technology for this space".
Parking was worth more than $100 billion globally.
"The demand is huge. Vehicle numbers are expected to double in the next three years and the populations growing so parking is a huge growth industry."
They chose the name Frogparking simply because it was fun "and memorable".
A future sharemarket listing was not out of the question, she added.
"We have an exit strategy and listing is one of our options so we're not sure at this stage."
Bailey said that from an investor perspective, Frogparking had "enormous capacity" and was growing rapidly.
"We're excited to be providing the working capital injection that will help make it achieve its potential."