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Airtasker buys rival, expands to US, UK

·1-min read

Online services directory Airtasker is stepping up US expansion, buying a rival and revealing a share sale to raise funds.

The company on Friday outlined a $20.7 million share sale would fund expansion and its purchase of US services directory Zaarly for $3.4 million.

The US company has gained more than 597,000 registered users and 900 service providers during its 10 years.

Zaarly co-founder Bo Fishback will lead Airtasker's expansion in the US market, which is worth $500 billion.

By contrast, the Australian market is worth $52 billion, according to consultancy Frost and Sullivan.

The underwritten share sale is only open to institutional and professional investors.

Airtasker will sell 20.7 million shares at $1 each.

Shares sold for 65 cents in the initial public offer before Airtasker listed on the market in March.

In April, it said full-year sales will exceed estimates in its prospectus.

The sales forecast has been revised to a range of $25.5 million to $26 million.

Former Macquarie banker Tim Fung founded the business in 2011.

Airtasker allows people to post messages online seeking and offering work, from chores such as lawn moving and ironing, to tuition and computer services.

Like many early-stage technology companies, it is yet to make a profit.

The company posted a $10.3 million loss in its 2020 financial year.

Airtasker shares on the ASX last traded for $1.08 before a trading halt.

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