Telstra has announced that, subject to completion of binding transaction documents entered into recently, it will make a majority investment in Australian online e-commerce platform Neto.
Based in Brisbane, Neto provides a cloud-based e-commerce solution that allows small to medium sized retailers and wholesalers to quickly establish an end-to-end online store. The platform was launched in 2011 and its customers include The Spotlight Group, Anaconda, Drizabone and Edible Blooms. Neto also has a strong relationship and integration with eBay with a majority of Neto customers also having a presence on eBay.
Telstra Business Group Managing Director, Will Irving said the investment in Neto is a logical fit for Telstra as the technology needs of business customers change with the digital revolution in retail.
“We estimate that by 2020, 82 per cent of SMEs will have a web presence, rising from 58 per cent today,” Mr Irving said.
“The role of e-commerce will only become more important in the competitive retail environment. The Neto platform allows businesses to meet the needs of customers at their convenience: where they want and when they want. Neto is a truly innovative Australian company and our investment will represent a great opportunity to deliver value to our customers.”
Neto Founder and Director, Ryan Murtagh, said that the investment to be made by Telstra means that they will have an opportunity to expand at a faster rate and help Australian retailers compete on a global scale.
“We started Neto four years ago and have grown rapidly during that time as online shopping has become mainstream. There is still so much growth to occur though, especially in the Australian market, and the investment to be made by Telstra will give us the scale and scope to maximise our growth,” Mr Murtagh said.
The terms of the investment were not disclosed.