PaySauce Secures $1.5m Investment, Grows Recurring Revenue

PaySauce Secures $1.5m Investment, Grows
Recurring Revenue 108% for the Year
Wellington, New Zealand – 4 July 2019

Employment solutions platform PaySauce (NZX:PYS) has secured a $1.5M investment
from clients of Cleary Wealth Management Limited (via their custodian Public Trust
Class 10 Nominees Limited).
PaySauce CEO Asantha Wijeyeratne acknowledged the continued support of Grant
Cleary and his clients, who were early-stage investors and have witnessed the
dramatic growth of PaySauce. “With a strong year of continued growth, we’re in a
great position to leverage our growing foothold in the market and continue to build
our customer base. The investment will provide working capital to bolster our
expansion plans, as well as square off the final costs of our NZX listing.”
The investment is by way of convertible loan note (CLN) and will convert to ordinary
shares in PaySauce on an enterprise value of $60M on 30 June 2021, or earlier if
agreed between the parties. Standard anti-dilution protections apply to the
investment and interest will be accrued and converted to shares.
PaySauce has recently transitioned from a mobile payroll app to an employment
solutions platform, including mobile timesheets, banking integration, PAYE filing,
labour costing, automated general ledger entries and digital employment contracts.
Wijeyeratne says this is a sign of things to come. “PaySauce is now well beyond
payroll. We’ve moved from calculating pay, to making payments to staff, to full
integration with New Zealand’s banking and taxation systems. With the advent of
Inland Revenue’s Payday Filing, we’ve been able to reduce administration hours for
business owners further. Most significantly, we have evolved into a platform to
streamline interactions between employees and employers.”

2019 Annual Report released
PaySauce has just released their 2019 annual report, showing that ARR (annual
recurring revenue) was up 108% on the March 2018 figure of $0.498M, to $1.038M as
at 31 March 2019. Customer numbers grew 86% from 746 in March 2018 to 1,384 in
March 2019.
Wijeyeratne attributes the strength of these numbers to traction in the agricultural
sector. “Much of our recent growth has come from farming, especially the dairy
industry. Dairy’s unique employment environment has given PaySauce the chance
to deliver ground-breaking solutions and hone our business model. The learnings
and solutions that we’ve discovered in the agriculture sector have tremendous
potential to be repurposed in other markets or verticals.”
This is the newly listed company’s first annual report and serves to emphasize the
pace of recent growth and the shift to a platform model. The report also lays out the
rising fintech company’s ambitious vision, with talk of international markets and a
“one-stop” marketplace model to encompass a range of HR functions.

Share Consolidation
PaySauce has also announced that the company will undergo a capital decrease of
shares (“share consolidation”) this month. Shareholders will receive one PYS ordinary
share for every 50 PYS ordinary shares held at 5PM on the Record Date of Friday, 12
July 2019. In order for the Share Consolidation to be processed, PYS will be halted
from pre-market open on Ex Date, Thursday, 11 July 2019. On Tuesday, 16 July 2019,
trading will resume in PYS ordinary shares.
ENDS

For more information
For further information, contact Asantha Wijeyeratne, CEO, on 021 554 600 or
investor@paysauce.com, or visit www.paysauce.com/investor.
ABOUT PAYSAUCE
PaySauce is software at work for people, providing employment solutions to small
and medium-sized businesses. PaySauce enables business owners to pay and
manage employees accurately and efficiently using the web, iOS, and Android
applications. The PaySauce platform includes mobile timesheets, payroll
calculations, banking integration, PAYE filing, labour costing, automated general
ledger entries and digital employment contracts. www.paysauce.com
ABOUT CLEARY WEALTH MANAGEMENT
Cleary Wealth Management Limited delivers innovative investment options built on
a unique, in-depth view of the economic and investment world. They cater to
individual investors, family offices, investment committees, and indigenous trust
markets. www.cleary.co.nz