How Smeetz Diversifies Its Capital Stack to Optimize Funding Costs
Smeetz Snapshot
Smeetz, a Swiss-based B2B SaaS company, delivers a cloud-based unified commerce solution designed for visitor attractions. Its platform simplifies ticketing operations and harnesses data to optimize revenue. Catering to over 160 clients worldwide, Smeetz's diverse customer base includes Otium Leisure’s Fort Boyard Adventures and Chillon Castle, Switzerland's premier historical attraction with nearly 400,000 annual visitors.
As an innovator in revenue management for the attractions industry, Smeetz leverages AI to gather and analyze customer journey data, thereby boosting revenue and enhancing operational efficiency for venues like amusement parks and museums. In partnership with Adyen (AMS: ADYEN), a global leader in payment solutions, Smeetz offers cutting-edge and competitively priced embedded payment features.
Executive Summary
Smeetz successfully obtained long-term growth capital, paving the way for continuous expansion without any equity dilution.
The Challenge
As Smeetz experienced growing client interest, it faced the challenge of financing its expansion. The company's predictable future revenues were delayed by typical sales and implementation cycles. The company was in search of efficient capital solutions to bolster its growth, ideally without resorting to equity financing.
Alexandre Martin, Co-founder and CEO of Smeetz, explains: "We were onboarding new clients poised to generate future revenue and were keen to avoid equity financing. Opting for Lendity's solution was a strategic move, as it minimized our funding costs and avoided dilution. This long-term committed capital was a significant advantage over standard credit lines, allowing us to concentrate more on growth and less on continuous fundraising efforts”
"We were onboarding new clients poised to generate future revenue and were keen to avoid equity financing. Opting for Lendity's solution was a strategic move, as it minimized our funding costs and avoided dilution. This long-term committed capital was a significant advantage over standard credit lines, allowing us to concentrate more on growth and less on continuous fundraising efforts”
Alexandre Martin, co-founder and CEO of Smeetz
The Solution
Smeetz's consistent growth, acquisition of prominent new clients, and high customer satisfaction enabled it to diversify its funding sources. Incorporating debt into its financial structure allowed Smeetz to minimize funding costs while retaining control and preserving equity for founders, team, and investors.
"The solution was ideal since it spared us the need for valuation discussions or shareholder agreement changes, yet keeping all future options open”. The company's robust customer retention and the addition of prestigious clients attested to the quality of its product and the predictability of its revenue, contributing to the rapid finalization of the transaction.
Conclusion
This strategic approach to capital diversification not only optimized Smeetz's funding costs but also signified a forward-thinking mindset in managing financial resources. By leveraging debt financing, Smeetz could fuel its growth ambitions without diluting its equity – a move that speaks to its financial acumen and commitment to long-term value creation for its stakeholders.
Ultimately, Smeetz's story exemplifies the significance of strategic financial planning in the tech sector. The company's ability to adapt its capital structure in response to growth opportunities while preserving equity showcases a well-balanced approach to scaling operations and aligning investor interests. This strategy positions Smeetz as a leader not just in its technological offerings but also in its financial stewardship, setting a benchmark for other emerging tech companies.