Troozi Seeks Capital for Online Dating Platform Ahead of Potential IPO

Troozi, a private Australian-owned online dating platform customized for India, is seeking to raise AUD 8m (USD 6.3m) in the next 12 months, said co-owner Lija Wilson. The company is now seeking to raise AUD 3m from a Series A round for marketing and product development initiatives, to be followed by an AUD 5m raise around April 2016, she said.

The company expects to raise the AUD 3m by the end of May this year. Troozi will consider an IPO or reverse listing in 2016, most likely on the ASX to take advantage of current investor appetite for smaller tech listings and opportunities for reverse listings, Wilson said.

The company, which already has 90,000 users, forecasts FY18 revenue of AUD 15.7m and EBIT of AUD 8.4m, with potential future valuations of 20x-30x EBIT, Wilson said.

The company is not using advisors for this round but has started conversations with advisors to assist with the next round and is willing to hear from others, she said.

India is the world’s second most populated nation, with 950m mobile phone users, according to online news service for the mobile industry Mobile Live, she noted.

The company has had interest from high net-worth individuals and family offices as well as venture capital firms intrigued by size of the market opportunity, Wilson said. Interest from potential investors in the US, India, Singapore and Australia, Wilson said, noting that the company has presented to investors in Singapore and is undertaking roadshows in Sydney and Melbourne.

Troozi is majority owned by Wilson and her husband John, and the company’s COO Nikhil Jain. Wilson and Jain were involved in building Australian online dating site RSVP, after it was bought by Fairfax Media [ASX:FXJ] in 2005 for AUD 38.9m. In 2014, RSVP signed an AUD 90m merger agreement with Ten Network Holdings’ [ASX:TEN] Oasis Active.

Interest in the online dating space in India is evidenced by a number of recent deals, Wilson said. New York, NY based online dating app provider Hinge, which has reportedly raised USD 20m to date, launched in India this month, as reported.

Meanwhile, Indian-origin online dating site TrulyMadly secured first-round funding from Helion Venture Partners and Kae Capital in March this year and Mumbai-based People Group, which owns Indian matrimonial portal Shaadi.com, took a 25% stake in dating applications maker Thrill for some USD 1m in January 2015, as reported.

By Louise Weihart, in Sydney February 26, 2015

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