Key Highlights from today's Webinar:
1. The CRO team now consists of 70 people, including recent hires of Senior people who have come across from Xero and PayPal. I see this as indicative of how other industry players see the future of CRO and the rapid expansion of their workforce.
2.Their new relationships with MasterCard and Fresh Supply allow them to pursue a 'different kind of customer with a different scale' and to have 'multi jurisdictional capabilities'
3. They are going forward aggressively in next 5 months with customers who generate 'high volume consumables'
4.They are materially focused on allowing customers to access debt through non-bank lending.
5. Their biggest challenge at the moment is satisfying the demand which far outstrips their ability to supply, thus the need to quickly establish a 'debt warehouse'. Their goal is to be able to satisfy the volume of demand by the end of this year.
6. Adrian stated that when recently negotiating with 'one of the big four', the comment was made that he needed the 'debt red sea', so this gives a good indication of the size of the debt warehouse needed and how large the demand is.
7. The explanation of pursuing 'nodes' was made clearer, with a node being a business with 1000 customers or more, and again the huge demand within nodes was made clear when Adrian said that their internal goal of gaining just 5% acquisitions from each node(50 new customers), has proved to be much too conservative.
8. When questioned whether MasterCard's push to be all powerful in the digital B2B space was linked to CRO, Adrian said he could not break confidentiality, BUT, the referral agreements with both MasterCard and Fresh Supply weren't signed to produce 'modest income'. The intent of the agreements was to have a 'big swing' at the market and capture a large market share. He said he could not reveal where they fit with MasterCard's plans, but said we should 'watch the media' over the next week or so.
9.Listing in the US has been discussed, but is a 'plan for the future, not for today'. The goal is to build tempo and scale in Australia first to prove their capabilities.
10. The new agreements with MC and FS have already produced some big wins and Primary Production is now their key focus-Wine and Alcohol, Livestock, Grain, Fruit &Veg
11. The product which is getting the most attention is SpendaCollect, and it is this product that enables them to be non bank lenders and debt administrators.
12. Finally, updates to the market will be made 'in the not too distant future', but what was evident throughout the interview is that confidentiality is necessary, so I would not expect any individual companies to be named, and this makes me think, as I said at the time, that the 'non-binding agreements' they tried to present to market couldn't be announced because the companies involved couldn't be name because of confidentiality requirements.
In summary, this presentation alluded to some very big things in the pipeline and consolidated my belief that this will be huge.
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(20min delay)