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OMN.AU - OneMarket


whistlerbumps

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Has anyone looked at OneMarket (OMN AU)?  SF HQ'd technology start up that was spun out of the Westfields-Unibail merger so you have a very small spin of a US venture state technology company to Australian REIT investors.  Seems like a good recipe for forced selling... Stock down ~1/3 from A1.50 to A1. 

 

Company had ~1.50 per share of cash at the spin but is expected to burn ~7mln per month which gives it a 2 year runway. 

 

Business is providing a digital network to physical retailers allowing them to share data and marketing insights.  Very early stage at this point but they have signed contracts with Westfield, Unibail, Taubman, Nordstrom, Macerich, Express and Guess so it seems like they have gotten some traction with sizeable retailers. 

 

No idea what it will mean in terms of revenue but if they pull it off, it will be a SaaS business so should get a multiple.

 

I view it as a chance to invest at a negative pre-money valuation in an early stage venture deal which seems pretty interesting to me (obviously with the proper position size)....  Curious if anyone has any thoughts on it...

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  • 2 weeks later...

Their reviews on Glassdoor are about as bad a commentary on a company as you'll see, especially if compared to other software / tech companies (which usually have a lot of positive things to say): https://www.glassdoor.com/Reviews/OneMarket-Reviews-E832556.htm

 

Agreed.  Definitely a concern although there is a potential explanation.  The company was historically an internal tech team for Westfield.  In mid 2016, they brought in a new CEO and relaunched the business in late 2017.  This was a significant strategy shift and led to a lot of change in terms of projects, products and roles. There were also significant layoffs of employees as the company moved to upgrade the talent needed to continue to make the product accessible to a non-Westfield audience.

 

That being said, it is certainly something to continue monitoring as I agree it is a critical issue for the long-term.

 

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