Leading digital classifieds group The Mitula Group Limited (ASX: MUA) has launched a A$4 million fund for investments in innovative new businesses that are aligned with its ‘Closer to the Transaction’ Strategy.
Founded in 2009, The Mitula Group is a leading digital classifieds group operating vertical search, portals, and transaction based websites. Closer to Transaction strategy focuses on capturing more value from existing visits to websites through advertising and transaction based products and services.
The Mitula Group Investment Fund is now open for applications with the Mitula Group to undertake a global campaign to build awareness of the fund and the opportunity it provides for early stage businesses to partner with and leverage the company’s assets, brands and websites.
The fund envisages taking stakes of 20-30% in the companies in which it invests and holding a portfolio of 5-10 investments at any one time.
By aligning with its Closer to Transaction strategy, the ASX-listed company plans to extract greater yield from its 75 million visits each month to its websites, to leverage its core assets including its database of listings and historic search data, and to utilise its strong search engine optimisation and technology skills.
As we continue to drive our Closer to the Transaction Strategy, we have identified a wide range of opportunities that we could internally develop,” Mitula Group CEO and Managing Director Gonzalo del Pozo said.
“We believe the most effective path to monetising these opportunities is in partnerships with entrepreneurs aligned to rapid and sustainable growth and operating within the Mitula Group ecosystem.
Mitula is well placed to leverage our market leading assets, along with our experienced management team, to acquire stakes in valuable, high potential businesses and accelerate their growth and development.”
The Fund is expected to make investment decisions in the coming months and to invest the majority of the allocated funds over the course of calendar year 2018.
The Fund will report to the Board and be overseen by Mitula Group Non-Executive Director, Gonzalo Ortiz.
Mr Ortiz has extensive experience accelerating early-stage digital companies and is a Director of the Spanish based Onza Investment Fund, a venture capital firm focused on innovative Internet companies and mobile platforms in key sectors of the online world.
Shares in Mitula (ASX: MUA) were last trading unchanged at 60c at noon Friday AEDT.
