Australian tech company Metigy collapses, injuring 75 employees

Employees at an Australian tech company were shell-shocked by its sudden collapse after it planned to raise $1 billion in cash.

Metigy was founded in 2015 and offered an artificial intelligence platform that provided customer insights for small business marketing.

But his passing affected about 75 employees who appeared to be stunned when they were told on Monday that the company had gone into administration.

Several employees joined the company founded by David Fairfull and Johnson Lean just a few months ago.

One employee who has worked at Metigy for nearly 18 months said two weeks ago that she “never thought” the company would fail.

“All of our employees have been briefed today and we are shell-shocked to say the least,” she wrote on LinkedIn.

“It’s heartbreaking that our journey ended so early when I could see what we’ve turned the corner with product over the past few months and what’s going to happen in the next few months.”

Another employee spoke of the plans they were making “for all the big work we could do with the new brand and communications function at Metigy,” which she had hoped to lead but suddenly found herself unemployed instead.

“We’re pretty shell-shocked. It’s not because we didn’t care, or because we didn’t work well, or because the market conditions weren’t in our favor – and that will always be the hardest thing to deal with when you work as hard as we do.” ,” she wrote.

“I am immensely grateful to have met this group of people that I now call friends, and I am so sad that we cannot continue this roller coaster together.

“My heart is always in the country of startups, no matter how hard it is. It’s an experience that teaches us a lot about ourselves, and I will always choose it.”

The collapse of the company came as a special shock, as it planned to raise money only two months ago.

A recent presentation by investor Metigy showed that the company’s revenue grew by more than 300% in both fiscal year 2020 and 2021, and it has over 25,000 customers in 92 countries. Australian Financial Review reported.

Meanwhile, Australian private equity firm Five V Capital recently featured Metigy as a case study showing that it was valued at $105 million in October 2020 when it invested, with its most recent valuation being $1 billion in April of this year.

The collapse of Metigy came as a “big shock” and caused “a lot of sadness,” added one of the employees on LinkedIn.

He said the “growth team has never failed” with a list of accomplishments in a short amount of time, including bringing in approximately 38,000 users from a base of just a few thousand, a website overhaul that resulted in a significant increase in conversion rates, and a complete rebrand. .

Simon Cathro and Andrew Blundell of Sydney-based firm Cathro Partners were named administrators Friday night.

The duo said they are working with investigators and lenders to evaluate the business ad and explore the feasibility of selling it.

“We are investigating the urgent sale of Metigy’s assets and intellectual property through a voluntary administration process and believe that a sale could result from this process,” they said.

According to documents filed with the Australian Securities and Investments Commission, Metigy has more than 30 shareholders.

Tech companies in Australia are struggling after a stock market bloodbath that spooked investors and made it difficult to find funding.

Other failed ventures include grocery delivery service Send, which went into liquidation at the end of May after the company spent $11 million in eight months to stay afloat.

Last month, Australia’s first neobank, founded in 2017, Volt Bank went bankrupt. 140 employees lost their jobsand 6,000 customers were asked to withdraw their funds urgently.

A Victorian food delivery company that described itself as a competitor to UberEats and Deliveroo also filed for bankruptcy in July. if it became unprofitabledespite having delivered over $6 million since its launch in 2017 and had 18,000 customers.

venture firm delivered a sobering message on the state of Australia’s start-up industry, warning that more new companies would go bankrupt and cutting funding as a result.

Originally published as Australian tech company Metigy suddenly collapsed, leaving employees ‘shell-shocked’