Saskatoon-based Vendasta, which has created a cloud commerce platform for small and medium businesses, has filed its preliminary long-form prospectus to go public on the Toronto Stock Exchange (TSX).
The filing was made public on Tuesday after it was first reported by The Globe and Mail that the company had confidentially filed documents with regulators earlier this month.
Vendasta has yet to price the offering. It is set to be listed on the TSX under the symbol ‘VND.’
The company’s offering is being underwritten by CIBC World Markets, TD Securities and National Bank Financial (as joint bookrunners) as well as BMO Nesbitt Burns, Canaccord Genuity, Desjardins Securities and Paradigm Capital.
Launched in 2008, Vendasta offers B2B software aimed to help local businesses with their digital needs. Vendasta allows users to brand its platform as their own and provides those local businesses with re-sellable products and services. The startup sells its software through channel partners such as agencies, broadcasters, publishers, banks, and telecoms.
According to its filing, Vendasta pulled in revenues of $42.6 million and $34.5 million in 2020 and 2019, respectively. It saw a 19.6 percent year-over-year increase in software revenue and a 36 percent increase in partner solutions revenue. The company noted an increased demand for digital ads and websites. Vendasta also reported that its number of paying partners increased from 1,755 as of December 2019 to 2,681 in December 2020.
Vendasta has raised more than $50 million to date, its largest round being $40 million in private equity growth funding it pulled in in 2019. The round comprised of $25 million led by the Canadian Business Growth Fund (CBGF) and $15 million with participation from longtime investor Vanedge Capital and BDC Capital through its IT Venture Fund.
Vanedge Group holds 31 percent of Vendasta’s outstanding common shares, with BDC holding 29 percent. The pair are set to remain as the principal shareholders with over 10 percent of outstanding shares following the closing of the IPO.
Vendasta is the latest in a slew of Canadian tech companies turning to the public markets. The Globe also reported that Magnet Forensics and Thinkific both recently confidentially filed documents with regulators to go public.
Toronto-based startup Payfare, which offers FinTech software for gig economy workers and employers, filed for its IPO in February, pricing it at $65 million. Payfare has been conditionally approved by the TSX to list under the symbol ‘PAY.’