Till Payments makes 120 staff redundant, shakes up board in continuing fintech shakeup
In addition to the restructure, Matt Davey, Theo Koundouris and Jerry Yohananov have been appointed to the Till Payments board, joining co-founders Mr Haddad and Christopher Hicks.
The three new directors nod towards Till Payments’ hopes to list on the Nasdaq, which the company confirms is still on the cards.
Till Payments is currently elbows-deep in a $200 million capital raise, which management expects will be at a lower valuation than its last capital raise at the end of 2021 which valued the business at $500 million.
Las Vegas-based Mr Davey runs Tekkorp Digital Acquisition, a blank cheque company that is listed on the Nasdaq and worth about $US250 million ($362 million).
Mr Koundouris is managing director of Supabarn, a family-owned supermarket chain that is also a Till Payments customer.
Mr Yohananov is the chief financial officer of OnDeck Capital Australia, a technology-based small business lender that offers loans up to $250,000.
The three new independent directors have replaced chairman Greg Miles, a former Westfield executive, illion chief executive John Banfield and Edwina Gilbert, who is chairwoman of Phil Gilbert Motor Group and who also sits on the Carsales.com board.
Till Payments, which offers an omnichannel-payments platform centred around merchants, has been growing rapidly as businesses rush to digitise their operations and merchants look to simplify their growing number of payment offerings.
The explosive growth of Afterpay, the buy now, pay later company that was acquired by Square in 2021 in a $US39 billion deal, jump-started a wave of payment start-ups that enjoyed several years of growth and venture investment.
But rising interest rates and higher inflation have dampened the margins of payments companies; both those building the underlying technology as well as those offering technology-based loans.
Till Payments, which banked $125 million in 2021 from investors like Afterpay-backed Touch Ventures joining high profile Australian dealmakers on the register, expanded its operations to New Zealand in 2022.
The company said it was processing over 200 million transactions annually and had booked threefold growth in merchant base and annualised transaction volumes from 2021.
“As part of this strategic shift focusing on immediate objectives for sustainable growth, achieving profitability and maintaining industry-leading customer service, we have had to restructure our business,” Mr Haddad said.
“In line with our three-year plan, and in response to pandemic fuelled activity we have been over investing in expansion and driving phenomenal growth, which I take full responsibility for.”