Wholesale broadband connectivity supplier RequestDSL has added $20 million to its coffers after receiving some additional funding from major stakeholder Telecom Venture Group (TVG) and founding investor Pilbara Mines.
RequestDSL chief executive officer Phil Sykes said the third of round funding is recognition of the company's success in implementing a business model that thrives on the efforts of reseller partners.
"We've used our funding cautiously in the past but still made an impression on the market, and the investors have rewarded us accordingly," he said. "We created a business discipline that was different to other start-up companies because unless we met our business goals we weren't going to get the funding."
Sykes said the top priority for use of the funds is the acquisition of further customers through marketing initiatives and channel development. The funds will also be used to expand the company's DSL network.
The 93 resellers RequestDSL has signed up since establishing its channel program in mid-2001 can thus expect better channel support through new marketing materials and training. "We will help them win the customers over," Sykes said.
"This kind of product necessitates a closer working relationship with resellers than what our competitors offer," he said. "You can't just throw a product out onto the market and hope people will want to sell it."
RequestDSL reported its best sales ever in December 2001and the company's order books for January 2002 indicate strong growth for the coming year.
"Broadband is becoming standard among small businesses as an enabler of business efficiency," said Sykes. "And it is not for the pipe-dreams people originally pitched it for, it's an essential tool for the everyday running of a business. So with the right amount of promotion, I expect dramatic business growth this year."