Appnovation, a Vancouver-based software startup that develops digital solutions and strategies focused on user experience for businesses, has raised $11.6 million CAD in Series B equity financing.
The round was raised from previous investors, the Canadian Business Growth Fund (CBGF) and United Kingdom-based Business Growth Fund (BGF), and new investor Export Development Canada (EDC) through its investment matching program.
“Appnovation’s digital IT services will help companies enhance their online presence and remain competitive.”
Appnovation will use the proceeds from this investment to continue its global expansion and growth strategy, which includes scaling Appnovation’s teams globally, as well as potential acquisitions.
Appnovation is classifying its latest round as Series B financing. This follows the startup’s $15 million CAD Series A, raised by CBGF and BGF in July 2019.
Following CBGF and BGF’s investment, Appnovation claims it has scaled up its team by 30 percent (to 350 people) and achieved 20 percent revenue growth despite the global pandemic. The startup also claims it has seen growth in revenue over the fiscal year. This strong growth trajectory, Appnovation said, is what attracted the Series B investment.
“Over the past year, we’ve made strategic hires, deepened capabilities and accelerated international growth with the help of an initial round of investment funding,” said Arnold Leung, founder and CEO of Appnovation. “We will continue that global growth trajectory and look at expanding our footprint in strategic markets, like Asia Pacific, with this new injection of funding.”
Founded in 2007, Appnovation develops digital solutions and strategies for businesses. In its first year, Appnovation helped mobile marketing company Tatango launch the older version of its mobile texting platform called NetworkText.
Appnovation currently has 15 offices across North America, Europe, and Asia, and is headquartered in Vancouver. In 2014, the company opened an office in Montreal and a sales and development centre in Saint John, New Brunswick. In the same year, the company was included in the Deloitte Fast 50, which showcases fast-growing Canadian technology companies.
In late 2016, Appnovation completed its first acquisition, buying the digital agency Wunderkraut Benelux, which brought Appnovation’s number of employees to 250. In April 2020, Appnovation began working with British Columbia’s Ministry of Health on digital solutions to help lessen the risk COVID-19 cross-contamination between province-wide healthcare facilities.
“More than ever, digital sales strategies are key to succeeding in global business,” said Carl Burlock, EDC’s executive vice president and chief business officer. “Appnovation’s digital IT services will help companies enhance their online presence and remain competitive amid these challenging economic times.”
Image source Unsplash. Photo by Kelly Sikkema.