Contingent workforce solutions provider, Rision, is seeking a $4 million plus funding boost to accelerate growth of its patented mobile recruitment and HR platform in key US and Australian markets when it lists on the ASX in June through a reverse takeover of Reclaim Industries Limited (RCM).
With the only comprehensive mobile platform on the market that solves the challenges of recruiting and managing shift-workers in industries like retail, property services, hospitality, healthcare, franchising and construction, Rision’s listing comes on the back of strong investor interest and a total $3 million of funding raised since late 2014.
What problem is Rision solving?
The platform is the product of more than ten years of research, labour and investment by passionate contingent worker advocate, recruitment executive and now Rision founder Robert Day.
Robert is confident that his brainchild is set to shake-up the recruitment and HR industry just like Xero has disrupted the accounting sector.
“With the number of workers employed on a contingent, part-time or project basis predicted to grow to more than half of the US and Australian workforce by 2020, the market has been crying out for a solution to the HR headache of hiring and managing such a fluid workforce,” he explained.
“Using the latest mobile and cloud technology, we’ve developed the only solution on the market dedicated to helping workers find more shifts and businesses recruit, roster, manage and pay their staff more easily, quickly and cost-effectively,” Robert stated.
How exactly does Rision work?
In addition to the JobMatch service, that saves managers having to trawl through hundreds of job applications, Rision’s LastMinute hiring function helps managers fill a vacant shift immediately, using the Rision database of known candidates with the required availability, skills and expertise.
The automated rostering interface has also proved a hit with managers looking to streamline the time-consuming task into an intuitive click-of-a-button-system that sends shift notifications directly to employees’ mobile devices.
Robert revealed to Anthill that Rision is continuing to develop its technology offering, with a first-of-its-kind mobile wallet product for contingent workers in the pipeline and integration with leading social media platforms in progress.
This is not your run-of-the-mill tech start-up
Rision is not your average tech start-up created by 30-something year old programmers or some teenage whiz kid, Rision’s 67 year-old founder has been had his elbows dug into finding a solution to the contingent workforce challenge since 2000.
Prior to founding Rision, Robert established and managed a successful recruitment business for casual workers, servicing large clients across construction, transport and manufacturing industries.
Before that he spent 15 years working for Shell Chemicals/LPG in a variety of positions including Regional Manager and has also managed his own hospitality business.
Robert founded Rision, formerly Employment Management Systems, in 2000, recognising the ability to better manage contingent employees with the help of today’s new tech.
Originally envisaged as a bespoke solution for recruiters, Rision has grown to encompass all aspects of hiring, managing and supporting contingent employees. In 2014, Robert sought funding to pivot the company, and develop a fully integrated mobile solution.
Rision unveiled its product range at the HR in Hospitality Conference in Las Vegas on March 18th and has already proved popular with customers in the US and Australia, including businesses which employ hundreds of workers in catering, restaurants and cleaning services industries.
Why the reverse-listing?
Rision joins the likes of Yatango on the growing list of Australian companies that have employed the reverse takeover method to list on the stock exchange.
Managing Director and CEO, Kate Cornick, said the board of directors are taking a deliberately conservative approach with the listing to avoid a share price spike seen by other recent Australian technology disruptors launching on the ASX.
“A reverse listing provides a range of benefits that other funding avenues do not, such as: strong governance requirements from following all the necessary ASX due-diligence, access to alternative capital to angel investments and venture capital, and as a result can provide an ability to accelerate product development,” she explained.
“One surprising benefit for Rision is that the simple fact that we are listing on the ASX has opened a lot of doors with customers in the US, a region notoriously difficult to crack for Australian start-ups,” Kate highlighted.
So should you do a reverse listing too?
Kate also told Anthill that many in the business world warn about the red flags involved in a reverse listing, arguing that the negative and risky perceptions might warn off potential investors.
“But my experience has been very different – we have built strong relationships with our brokerage firm who have introduced us to experienced investors with an appetite for investing in companies like ours,” she shared.
“Many of our conversations have been with investors who have had success with mining ‘start-ups’ and who are looking to diversifying into technology.”
Kate went on to disclose that for Rision, the reverse-takeover process has been long – far longer than anticipated at the start – with many additional complexities for a small company to face in addition to the already burdensome task of building a new business.
“As CEO I spend a lot of my time on matters relating to listing rather than focus on growing business.”
“However a reverse listing offers businesses a legitimate path to growth. It saves the stress of being drip-fed capital from angel investors and VC funds and it means talented Australians don’t have to leave the country and pursue their funding dreams in Silicon Valley.”
“The cost of a reverse listing is not insignificant and needs to be carefully considered against other avenues of funding,” she advised.