Wholesale ASP provider Peakhour has managed to secure a third capital raising, settling for $6 million in what has become a very difficult market to gain funding.
"It was a very arduous process against harsh market conditions," said Peakhour spokeswoman Anna Kilmartin.
Originally seeking $14 million to keep its operations afloat, the amount was lowered due to lower technology company valuations, poor capital market conditions and a reduction in Peakhour's operating costs. The lowered operating costs came about due to Commander's purchase of Peakhour's 8000 retail customers last month.
The company has also closed its London office, abandoned plans to expand into Europe and will only expand into Asia on the back of significant deals. Its two Australian operations, Peakhour Australia and Peakhour Pty Ltd, have been rolled into one company and approximately 50 per cent of staff have been made redundant. Most of them held sales, marketing, business development and customer contact roles.
Peakhour now intends to focus its business purely on developing its ASP Shuttle service, which enables corporations such as financial, telecommunications and utilities companies to "white label" Peakhour's technology and offer value-added services to its customer base.
Peakhour will continue to invest in developing its ASP platform and, according to Kilmartin, will soon announce a new large corporate customer. She said there were significant opportunities in the corporate sector where large service providers are looking to bundle as many services as possible under one brand name to offer unified billing to small business customers.
Kilmartin said the company believes the $6 million raising, combined with the $6 million the company had in cash reserves at the start of the financial year, will keep Peakhour operating for at least another 12 months.